Does Big O Tires disclaim liability for the consequences of approving a given site?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to Franchisee's Commencement Date, Big O shall provide Franchisee with the following assistance to the extent and as determined by Big O from time to time in its sole discretion:
- (a) Assistance to Franchisee related to approval of a site for the Store, although Franchisee acknowledges that Big O shall have no obligation to select or acquire a site on behalf of Franchisee. Big O's assistance will consist of providing criteria for a satisfactory site, an on-site inspection and determination of whether a proposed site fulfills the requisite criteria, prior to formal approval of a site selected by Franchisee. At Big O's option, Big O may, without fee or expense to Franchisee, review the proposed Store lease. The final decision about whether to acquire a given approved site or whether to execute any particular lease shall be the sole decision of Franchisee. Big O disclaims all liability for the consequences of approving a given site. Big O's participation in site selection in no way is meant to constitute a warranty or guaranty that the Franchised Business will be profitable or otherwise successful. Big O's written approval of the Premises and Store must be obtained by
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, Big O Tires disclaims liability for the consequences of approving a site selected by the franchisee. While Big O Tires offers assistance related to site approval by providing criteria and conducting on-site inspections, the final decision to acquire a site and execute any lease rests solely with the franchisee.
Big O Tires' participation in site selection does not constitute a warranty or guarantee of the franchised business's profitability or success. The FDD states that Big O Tires' approval of a site indicates only that the site falls within the company's acceptable criteria at that time. The approval of the site does not represent or warrant its suitability for a Big O Tires store or any other purpose.
This disclaimer means that franchisees bear the ultimate responsibility for site selection and the performance of their Big O Tires location. Even if Big O Tires approves a site, franchisees cannot hold the company liable for any losses or lack of success resulting from that location. Prospective franchisees should carefully evaluate potential sites and conduct their own due diligence to ensure the site meets their needs and has the potential for success.