For a Big O Tires franchise, what is the length of the initial lease term?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.1. Term. The initial term of this Lease shall be for ten (10) years (the "Term") commencing on the "Commencement Date," as defined in Subsection 1.4 below, and ending ten (10) years from the Commencement Date, subject to such options to extend as defined in Subsection 1.3 below.
- 1.3. Renewal Option. Provided that at the time of the giving of Tenant's renewal notice and at the end of the term hereof Tenant is not in default of any of the terms, conditions or covenants contained herein and provided, further, that the Franchise Agreement (as defined in Section 4) has been renewed by Tenant and Big O Tires, LLC, a Nevada limited liability company ("Big O"), Tenant (including any approved assignee or subtenant) is hereby granted the option to extend this Lease for two (2) successive additional terms of five (5) years each (the "Extended Terms") upon Tenant's notifying Landlord in writing of its election to extend at least one hundred eighty (180) days prior to expiration of this Lease. During such Extended Terms, if exercised, this Lease shall be on the same terms and conditions contained herein except: (a) the Extended Terms shall contain no further extension options unless expressly granted by Landlord in writing; and (b) Tenant agrees to pay to Landlord during said
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, the initial term for the lease is ten years. The lease term commences on the date specified in the lease agreement and concludes ten years thereafter.
Big O Tires franchisees also have the option to extend the lease for two additional terms, each lasting five years, provided they meet certain conditions. To exercise this renewal option, the franchisee must not be in default of any lease terms at the time of giving the renewal notice and at the end of the initial term. Additionally, the Franchise Agreement between the franchisee and Big O Tires must also be renewed.
During these extended terms, the lease terms and conditions remain the same, except that there are no further extension options unless explicitly granted by the landlord in writing. Also, the franchisee will be required to pay an annual base rent that is subject to adjustment as per the lease agreement.