What is the fill rate policy for Big O Tires described in Item 6, Note 2?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Tires. We sell lines of private label tires to Big O Tire Stores. These private label tires may be manufactured by Sumitomo Corporation, which holds a partial indirect ownership interest in us, or unaffiliated manufacturers. We may look to other manufacturers to produce tire products in the future. We do not manufacture tires. Most products are delivered to franchisees from the RDC servicing their area at a minimum of twice weekly. We commit to supply you with the Big O branded tire lines but we do not guarantee to supply you with any specific numbers or sizes of tires or with any other specific tire brands. However, we do have a fill rate policy which is described in Item 6, Note 2.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, the franchisor commits to supplying franchisees with Big O branded tire lines but does not guarantee specific numbers or sizes of tires or specific tire brands. However, the FDD mentions that the fill rate policy is described in Item 6, Note 2. Item 8 states that most products are delivered to franchisees from the Regional Distribution Center (RDC) servicing their area at a minimum of twice weekly.
Because the details of the fill rate policy are not described within Item 8, prospective franchisees should review Item 6, Note 2, to understand the specifics of this policy. Understanding the fill rate policy is crucial for managing inventory and meeting customer demand.
Prospective franchisees should inquire about the specifics of the fill rate policy, including how it addresses potential stockouts, the process for ordering tires, and the typical timeframe for fulfilling orders. This information will help in assessing the reliability of the supply chain and its impact on business operations.