What is the exception to the five-mile radius notification for a new Big O Tires store?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Moreover, subject to the conditions described below, if we or any prospective franchisee propose to open a Big O Store within a five mile radius (as determined by us in our reasonable discretion) of your Store (other than by a franchisee converting an independent retail tire store to a Big O Conversion Store and other than the relocation of an existing Big O franchise that has been approved by us), you will be notified of your first option ("First Option") to acquire a franchise for the additional Store.
Source: Item 12 — TERRITORY (FDD pages 73–75)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, franchisees are typically notified if a new Big O Tires store is proposed within a five-mile radius of their existing location, giving them the first option to acquire the new franchise. However, there are exceptions to this notification process.
Specifically, Big O Tires franchisees will not be notified if the new store is a franchisee converting an independent retail tire store into a Big O Conversion Store. Additionally, the notification is not required if the new store is a relocation of an existing Big O Tires franchise that has been approved by Big O Tires.
This means that a Big O Tires franchisee might find a new Big O Tires location opening nearby without prior notification if it falls under these exception categories. This could impact their business, as they would not have the opportunity to expand by acquiring that new location. It is important for prospective franchisees to understand these exceptions and their potential impact on their business when evaluating the franchise opportunity.