Are the fees paid by the Big O Tires franchisee for the Subscription Services refundable?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Fees. For each Big O Tires store operated by Franchisee User, Franchisee User shall pay a one-time implementation fee of $250 to Big O upon execution of this Agreement, and a monthly fee of $340 to Big O on the first day of each month, all of which may be charged by Big O to Franchisee User by Automatic Clearing House charge (or required by such other payment method as Big O may specify from time to time). In the event that Franchisee User lapses in its payment obligations to Big O under this SaaS User Agreement, Franchisee User will be in default of this SaaS User Agreement. Franchisee User shall also be responsible for paying to Big O any and all taxes (including but not limited to sales and/or use taxes, value added taxes, and stamp taxes), fees, tariffs, duties, or other similar levies imposed or required by any government, governmental unit or similar authority with respect to the fees made or payments received in connection with the Subscription Services. For any fees that are past due under this SaaS User Agreement, Big O may, at its option, charge interest at the lower of the rate of 12 percent per annum or the maximum rate allowable at law. All fees paid are
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, all fees paid for the Subscription Services are non-refundable. Specifically, franchisees are required to pay a one-time implementation fee of $250 upon execution of the Subscription Services agreement, as well as a monthly fee of $340. These fees cover the franchisee's right to use and access the Subscription Services in connection with their Big O Tires store.
This non-refundable policy means that once these fees are paid, a Big O Tires franchisee cannot get them back, regardless of whether they fully utilize the Subscription Services or if their agreement is terminated early. This is a standard practice in many franchise systems, as these fees often cover the franchisor's costs for setting up the franchisee with the necessary resources and technology.
Furthermore, the franchisee is also responsible for any taxes, fees, tariffs, duties, or other levies associated with the payments made for the Subscription Services. If a franchisee fails to meet their payment obligations, Big O Tires may charge interest on the past due amount, at a rate of 12 percent per annum or the maximum rate allowable by law, whichever is lower. Given the non-refundable nature of the fees, prospective franchisees should carefully evaluate the value and necessity of the Subscription Services before entering into the agreement.