What expenses must the Big O Tires franchisee bear for their personnel during training?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
For all training, you must pay all your employee costs, such as salaries and wages, benefits and uniforms.
In some circumstances designated by Big O in its sole discretion (for instance, for Stores with real estate costs or past sales at high levels designated by Big O in its sole discretion), Big O may provide or arrange for certain "additional training" that Franchisee's Operator or Manager must take. You must pay for your own transportation, lodging and living expenses which are incurred while attending this additional training; Big O, in its sole discretion, may charge a reasonable fee for this additional training; the amount of this fee, if any, has not been set as of the date of this disclosure document. This "additional training" will typically consist of spending an additional 60 working days training in a similar Store. Big O's current standards for these "high levels" include real estate project costs of $4,500,000 or more for purchased real estate or lease payments of $40,000 or more per month for leased real estate.
If you are a corporation or other legal entity, you must designate at least one Manager acceptable to us to receive training and you must provide for the day-to-day operations of the Store. The initial training program must be attended by you or your Operator and the Manager or Managers for your Store, all of whom must complete the training program to our reasonable satisfaction. If we are not satisfied
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 77–78)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, franchisees are responsible for covering various personnel expenses related to training programs. Specifically, the franchisee must pay for employee costs such as salaries, wages, benefits, and uniforms for all training programs.
For the multi-unit franchise management training, while there is a $550 training fee, the franchisee must also cover all travel, lodging, and meal expenses for their personnel. Similarly, if a store or an interest in the entity is transferred, the new transferee must bear all transportation and living expenses incurred by all trainees while attending the initial training program, including all lodging expenses for trainees beyond the first one.
Furthermore, for additional training programs, seminars, and online training that Big O Tires may offer, the franchisee may be required to pay tuition or fees for their trainees at Big O's discretion. Franchisees are also responsible for transportation, lodging, and living expenses for trainees attending this additional training. Even for optional online training programs like the Learning Management System (LMS), while there may not be a fee initially, Big O may impose a fee of $150 per month with notice, and this fee is subject to change by the vendor. These costs can add up quickly, so prospective franchisees should carefully consider these expenses when budgeting for training.