What documents must the assignee submit to Big O Tires to qualify and be approved as a Big O Tires franchisee?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
ASSIGNEE shall complete and submit to BIG O any and all additional applications or other forms customarily utilized by BIG O in qualifying and approving BIG O franchisees, including, without limitation, payment of the transfer fees, sworn financial statements, Certificates of Insurance, Acknowledgements of Receipt of BIG O's Franchise Disclosure Document, an Application for BIG O Franchise and any and all other documents as are listed on Exhibit C.
BIG O shall notify ASSIGNEE on or before the Closing Date whether ASSIGNEE are conditionally approved as a franchisee, subject to completing the required training so as to proceed with closing of the proposed transfer.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, an assignee seeking to become a franchisee must fulfill several requirements. The assignee must complete and submit all additional applications or forms that Big O Tires typically uses to qualify and approve new franchisees. These documents include payment of transfer fees, sworn financial statements, certificates of insurance, and acknowledgements of receiving Big O Tires' Franchise Disclosure Document. Additionally, the assignee must submit an application for a Big O Tires franchise and any other documents listed on Exhibit C of the Franchise Agreement.
Big O Tires will review these documents to determine whether the assignee is conditionally approved as a franchisee. This conditional approval, which is subject to the completion of required training, will be communicated to the assignee on or before the closing date of the proposed transfer. This process ensures that the assignee meets Big O Tires' standards and is prepared to operate the franchise effectively.
It is important to note that Big O Tires retains the right to withdraw its agreement and consent to the assignment if the assignor and guarantors fail to pay any amounts owed to Big O Tires upon demand. This condition underscores the financial stability and responsibility expected of all parties involved in the franchise transfer. Prospective assignees should carefully review Exhibit C and ensure they can provide all required documentation to facilitate a smooth and successful transfer process.