What is the definition of 'Big O' in the context of a material breach of the Franchise Agreement?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
. Without in any way limiting the generality of the meaning of the term "good cause," the following occurrences shall constitute sufficient basis for Big O to terminate the Agreement:
- (a) If Franchisee fails to pay any financial obligation pursuant to this Agreement including, but not limited to, payments to Big O or any other supplier for Products and Services, and fails to cure such failure to pay within five (5) days after Big O gives Franchisee a written notice of default;
- (b) If Franchisee fails to perform or breaches any covenant, obligation, term, condition, warranty, or certification herein and fails to cure such non-compliance within thirty (30) days after Big O gives Franchisee written notice of default;
- (c) If Franchisee fails to open the Store and commence business within eighteen (18) months of the Effective Date of this Agreement, or if Franchisee fails to commence business on such other Commencement Date as the parties hereto may have agreed. Notwithstanding the foregoing, Big O will agree to extend the time period to commence business so long as the Franchisee can demonstrate to Big O's reasonable satisfaction that the need to extend the time period is a result of factors beyond the Franchisee's reasonable control;
- (d) If Franchisee makes, or has made, any materially false statement or report to Big O in connection with this Agreement or the application therefor;
- (e) If Franchisee operates the Franchised Business or uses the Licensed Marks in a manner contrary to or inconsistent with this Agreement or Big O's policies, standards or specifications as stated in the Manual or elsewhere, and Franchisee fails to cure such deficiency within thirty (30) days after Big O gives a written notice of default;
- (f) If Franchisee, an Owner, guarantor, or transferee violates any transfer or assignment provision contained in Section 18 of this Agreement;
- (g) If Franchisee receives from Big O more than three (3) valid notices of default of this Agreement in the same twelve (12) month period, regardless of whether previous defaults have been cured;
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, several occurrences can constitute a basis for Big O Tires to terminate the Franchise Agreement. These include failure to pay financial obligations to Big O Tires or suppliers within five days of written notice, failure to perform any covenant, obligation, term, condition, warranty, or certification and failing to cure it within thirty days after written notice.
Additionally, making any materially false statement or report to Big O Tires, operating the franchised business or using the licensed marks inconsistently with the agreement or Big O Tires' policies, or violating any transfer or assignment provision can lead to termination. Receiving more than three valid notices of default in the same twelve-month period, regardless of whether previous defaults were cured, also constitutes sufficient basis for termination.
Furthermore, if a landlord claims an event has occurred, or if any material breach occurs under any Franchise Agreement between the tenant and Big O Tires, Big O Tires has the right to immediate possession of the premises and can become the tenant under the lease. Any default under the lease also constitutes a material breach under all Franchise Agreements between the tenant and Big O Tires. These stipulations highlight the importance of adhering to the Franchise Agreement and maintaining open communication with Big O Tires to avoid potential breaches and ensure the longevity of the franchise.