What is the definition of 'Local Customer' in the context of a terminated Big O Tires Franchise Agreement?

According to Big O Tires' 2025 Franchise Disclosure Document, a 'Local Customer' is defined in the context of a terminated franchise agreement. Specifically, a Local Customer is any customer of a Designated Location of the franchisee that is subject to a terminated Franchise Agreement. However, this definition excludes any customer of that Designated Location who has since purchased a product or service from a Competing Regional Store that is offered by Big O Tires or one of its franchisees.

This definition is important because it affects Big O Tires' obligations regarding marketing to these customers after a franchise agreement terminates. Big O Tires agrees not to market to any Local Customer of the Designated Location during the Restrictive Period, provided the franchisee is in full compliance with the termination provisions, provides written notice of compliance, and Big O Tires does not dispute this compliance. This Restrictive Period typically lasts for two years following the termination of the Franchise Agreement.

However, Big O Tires and its franchisees retain the right to access the Consumer Database for Local Customers of a terminated franchise for the purpose of providing warranty work and follow-up responses if the customer visits another Big O Tires location for warranty service. This access is limited to warranty services and does not permit Big O Tires to market to these customers in violation of the agreement. The information and history of all customers who are not considered Local Customers remain in the Consumer Database without restrictions on use by Big O Tires or its other franchisees.

In summary, the definition of 'Local Customer' is crucial for understanding the limitations placed on Big O Tires' marketing activities post-termination and the rights of the franchisee concerning their customer base. Franchisees should be aware of these provisions and ensure compliance with all termination requirements to protect their customer relationships during the Restrictive Period.