Are the financial statements for Big O Tires audited?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 21 FINANCIAL STATEMENTS
Attached to this disclosure document as Exhibit N are the audited consolidated financial statements of TBC Holdings and its subsidiaries as of March 31, 2025, March 31, 2024, and March 31, 2023 for the years then ended. We are owned indirectly by TBC Corporation, which is owned directly by TBC Holdings. A Guaranty of Performance by TBC Holdings of Big O's performance of Big O's obligations under the Franchise Agreement is included with the financial statements.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 101–102)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the financial statements of TBC Holdings and its subsidiaries, which indirectly owns Big O Tires, are indeed audited. Item 21 explicitly states that the audited consolidated financial statements are attached as Exhibit N, covering the fiscal years ending March 31, 2025, 2024, and 2023.
This is a standard practice in franchising, as audited financial statements provide an independent and reliable assessment of the franchisor's financial health. Prospective franchisees should carefully review these statements to evaluate the franchisor's ability to support the franchise system and meet its financial obligations. The inclusion of a Guaranty of Performance by TBC Holdings further reinforces the financial stability behind the Big O Tires franchise.
Specifically, the financial statements offer insights into TBC Holdings' assets, liabilities, equity, revenue, and expenses over the three-year period. Analyzing these trends can help potential Big O Tires franchisees understand the financial performance and stability of the parent company. This information is crucial for making an informed investment decision and assessing the long-term viability of the franchise opportunity.