In the event of a breach of the Big O Tires Agreement by the Licensee, what remedies does the Licensor have?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Tenant agrees that if Landlord claims that an Event has occurred, or if any material breach occurs under any Franchise Agreement between Tenant and Big O (whether relating to the Premises or not), then, Big O shall have the right to:
- (a) immediate and actual possession of the Premises, and, subject only to existing liens of record, all equipment and inventory therein, which such possession Tenant agrees to give peaceably, and which may be otherwise obtained by Big O by warrant, injunction, temporary restraining order, summary process or such other immediate legal, summary or equitable proceeding or action as Big O may choose.
Tenant hereby waives any right to a jury in any such proceeding or action.
(b) become the Tenant under the Lease to the exclusion of the Tenant.
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Tenant agrees that any default under the Lease shall constitute a material breach under all Franchise Agreements between Tenant and Big O, or its affiliates or successors.
Tenant and Landlord agree that they will not modify or amend the Lease without the consent of Big O, which shall not be unreasonably withheld.
Tenant and Landlord understand that Big O is entering into or has entered into a Franchise Agreement with Tenant for a Big O Tire Store at the Premises in reliance on the agreements of Tenant and Landlord as herein contained and that Big O, in this instance, would not have otherwise entered into such Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, if a material breach occurs under any Franchise Agreement between the tenant and Big O Tires, Big O Tires has the right to immediate and actual possession of the premises. This includes all equipment and inventory within the premises, subject to existing liens of record. The franchisee (tenant) agrees to provide this possession peaceably, but Big O Tires can also obtain it through legal means such as a warrant, injunction, temporary restraining order, or other legal proceedings. The franchisee also waives any right to a jury trial in such proceedings.
Additionally, Big O Tires has the right to become the tenant under the lease, excluding the original tenant (franchisee). This provision ensures that Big O Tires can maintain control over the location and continue operations if the franchisee defaults. Furthermore, any default under the lease by the franchisee constitutes a material breach of all Franchise Agreements between the franchisee and Big O Tires, including its affiliates or successors.
These remedies provide Big O Tires with significant control and protection in the event of a breach by the franchisee. They allow Big O Tires to quickly regain possession of the premises and continue operations, minimizing potential losses. The clause preventing modification of the lease without Big O Tires' consent further protects their interests and ensures the stability of the franchise location. The franchisee and landlord also acknowledge that Big O Tires entered the Franchise Agreement in reliance on these agreements.