Does the Big O Tires FDD include a guaranty of performance?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
However, the Franchise Agreement does contemplate warranties sponsored by Big O and you must honor them (Franchise Agreement Sections 14.01 and 14.04). We will absorb the franchisee's costs for (i) claims related to replacement due to road hazard and/or workmanship and materials as contemplated in the terms of the applicable Big O Program Products warranty for Big O I Tires (tires that carry the "Big O" label on the sidewall) in accordance with the terms and procedures prescribed in the Manual; and (ii) claims related to the prorated manufacturer's workmanship and material warranty for "Big O II Tires" (those that are (i) Big O exclusive tires that do not carry the "Big O" label on the sidewall, , and (ii) any other tires designated as exclusive to the Big O product screen) and any other tires that are Big O Program Products in accordance with the terms and procedures described in the Manual. (However, the warranty costs absorbed by us will be included in our costs in determining the prices at which we sell Big O Program Products to you). You must cover all other warranties (Franchise Agreement Section 14.04(b)).
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- We will provide you regional training and field assistance, inspections and merchandising advice pertaining to your Store (Franchise Agreement Section 7.02(b)(ii)).
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- We or a licensee designated by us will make available to you point of sale advertising materials and wearables utilizing the Big O marks and local advertising plans and materials, special promotions and similar advertising (Franchise Agreement Section 7.02(b)(iii)).
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- For each national promotion, we will make available to you or your Local Group electronic copies, or, where we deem appropriate, hard copies, of radio and television commercials (Franchise Agreement Section 7.02(b)(iv)).
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- In our sole discretion, we may provide other assistance occasionally under terms and conditions and for fees and charges as periodically established by Big O in its sole discretion (Franchise Agreement Section 7.02(e)). This may include, for instance, real estate consulting and other matters. See Item 6 in regard to fees.
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- Big O has established and may suspend and/or reestablish national fleet account and Key Account Customer programs and policies, which it may revise periodically in its sole discretion.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 101–102)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, Big O Tires does contemplate warranties sponsored by them, and franchisees must honor them. Big O Tires will absorb the franchisee's costs for claims related to replacement due to road hazards and/or workmanship and materials contemplated in the terms of the applicable Big O Program Products Warranty for Big O I Tires, in accordance with the procedures prescribed by the manual. Big O Tires will also absorb costs for claims related to the prorated manufacturer's workmanship and material warranty for Big O II Tires and any other tires that are Big O Program Products, again following manual procedures. These warranty costs that Big O absorbs will be included in the Warranty Costs used to determine the Big O Program Products Price.
The franchisee is responsible for covering all other warranties. Big O Tires may establish requirements to honor, offer, and/or participate in warranty programs for products sold other than Big O Program Products. These requirements may vary by location, due to variations in state warranty laws, and franchisees must comply with any requirements applicable for their location. Compliance may include payments to Big O, its affiliates, and any third party administrator for participation in the warranty programs, funding of the warranty programs, and other services related to those warranty programs. These fees are subject to change from time to time upon notice from Big O Tires to the franchisee.
Franchisees must also comply with all applicable laws regarding any warranties and guarantees that they offer. Big O Tires retains the right to revoke or modify warranties or guarantees, giving the franchisee at least 30 days prior written notice. Warranties or guarantees issued prior to any revocation or modification will be honored according to their terms as interpreted in the manual.