What forms must Big O Tires use when selling or providing CONTRACTS to customers?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT "R"
ROAD HAZARD SERVICE CONTRACT
Big O Tires Road Hazard Service Contract Program Franchisee Sales Agreement
This ROAD HAZARD SERVICE CONTRACT FRANCHISEE SALES AGREEMENT ("AGREEMENT") is executed this day of, 20 (the "Effective Date"), by and between ABS Operations LLC dba. Automotive Business Solutions, located at 10170 Church Ranch Way, Suite 320, Westminster, CO 80021 ("COMPANY") and , a Big O Tires Franchisee, ("SELLER"), located at , to memorialize in writing practices that exist between COMPANY and SELLER in relation to the operation of SELLER under COMPANY's PROGRAM. The effective date of this AGREEMENT as agreed upon by all parties hereto shall be the date first mentioned above. NOW, THEREFORE, in consideration of the promises and the mutual covenants herein contained, the parties hereto agree as follows:
Article 1: Definitions
- Section 1.1. The term "PROGRAM" means the Road Hazard Service Contract Program administered by COMPANY.
- Section 1.2. The terms "CONTRACT" or "CONTRACTS" refer to a road hazard service contract approved by COMPANY and properly sold or provided by SELLER. A copy of the approved CONTRACT(S) are attached hereto as Exhibit 1.
Section 1.3.
- (a) The term "CONTRACT HOLDER(S)" refers to the purchaser(s) or proper recipient(s) of a CONTRACT under the PROGRAM.
- (b) The term "PRIMARY CONTRACT HOLDER(S)" refers to the purchaser(s) or proper recipients(s) of a CONTRACT from the SELLER.
- (c) The term "SECONDARY CONTRACT HOLDER(S)" refers to the purchaser(s) or proper recipients(s) of a CONTRACT from any Big O Tires Franchisee authorized to sell CONTRACTS by COMPANY other than SELLER to whom SELLER provides repair or replacement service under PROGRAM.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, franchisees must use a road hazard service contract that is approved by COMPANY (ABS Operations LLC dba. Automotive Business Solutions) when selling or providing road hazard service contracts. The approved contract is included as Exhibit 1 to the Road Hazard Service Contract Franchisee Sales Agreement.
The Road Hazard Service Contract Franchisee Sales Agreement is between ABS Operations LLC and the Big O Tires franchisee. This agreement memorializes the practices between the COMPANY and the SELLER (the franchisee) related to the operation of the PROGRAM. The PROGRAM refers to the Road Hazard Service Contract Program administered by COMPANY.
The CONTRACT or CONTRACTS refer to a road hazard service contract approved by COMPANY and properly sold or provided by SELLER. CONTRACT HOLDER(S) refers to the purchaser(s) or proper recipient(s) of a CONTRACT under the PROGRAM. PRIMARY CONTRACT HOLDER(S) refers to the purchaser(s) or proper recipients(s) of a CONTRACT from the SELLER. SECONDARY CONTRACT HOLDER(S) refers to the purchaser(s) or proper recipients(s) of a CONTRACT from any Big O Tires Franchisee authorized to sell CONTRACTS by COMPANY other than SELLER to whom SELLER provides repair or replacement service under PROGRAM.
As a prospective franchisee, it is important to understand the terms and conditions of the Road Hazard Service Contract Program, including the responsibilities of both the COMPANY and the franchisee. Franchisees should carefully review the Road Hazard Service Contract Franchisee Sales Agreement and its exhibits to ensure compliance with the program requirements.