Does the Big O Tires franchise agreement prohibit a Big O Tires franchisee from communicating with regulators?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
. During the term of this Agreement and thereafter, Franchisee covenants not to communicate either directly or indirectly, divulge or provide access to or use for its benefit or the benefit of any other person or legal entity (including non-Big O stores and their employees and owners that are owned or operated, in whole or in part, by Franchisee pursuant to a franchise agreement or similar agreement with any affiliate or parent of Big O), any trade secrets which are proprietary to Big O or any Information, knowledge, or know-how deemed confidential under Section 13 hereof, except as expressly authorized by Big O. The protection granted hereunder shall be in addition to and not in lieu of all other protections for such trade secrets and confidential Information as may otherwise be afforded in law or in equity.
- 17.03 No Interference with Business.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
Based on the 2025 Big O Tires Franchise Disclosure Document, there is no explicit clause that prevents a franchisee from communicating with regulators. However, the agreement does include clauses regarding confidentiality and non-interference with the business. Specifically, franchisees must maintain the confidentiality of trade secrets and confidential information, and they cannot divert business away from the Big O Tires system.
While not directly prohibiting communication with regulators, these clauses could potentially be relevant if a franchisee's communication involves disclosing confidential information or negatively impacting the Big O Tires business. Franchisees are obligated to protect Big O Tires's trade secrets and maintain the integrity of the business.
Therefore, a Big O Tires franchisee needs to be cautious about the content of their communications with regulators, ensuring they do not violate the confidentiality or non-interference clauses of the franchise agreement. It would be prudent for a prospective franchisee to seek legal counsel to fully understand the implications of these clauses in the context of regulatory communications.