Which franchise model does the disclosure document primarily apply to for Big O Tires?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Big O offers franchises under two franchise models: Product Distribution Franchises and Business Format Franchises. (The franchisees for these franchises are referred to, respectively, as "Business Format Franchisees" or "Product Distribution Franchisees"). The information in the disclosure document applies to Business Format Franchises only. Production Distribution Franchises are offered under a separate disclosure document and under different terms.
When we refer to "your franchise", we mean your Business Format Franchise. When we refer to "your Franchise Agreement" or the "Franchise Agreement" or the "Franchise Agreements", we mean the Business Format Franchise Agreement in Exhibit B-1 (the "BF Franchise Agreement" or "Franchise Agreement").
Before 2006, we offered only Product Distribution Franchises, except for certain Business Format test market programs in southern Nevada, which ended around April, 2006. The Big O network is in the process of transitioning from the Product Distribution Franchise model to the Business Format Franchise model. We are only offering new Big O franchisees Business Format Franchises, but we anticipate that we will continue to have Product Distribution Franchises in our network for a significant amount of time. As of March 31, 2025, we have 437 Stores (not including company owned stores) that operate as Business Format Franchises.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–12)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, the information provided applies specifically to the Business Format Franchise model. Big O Tires offers two franchise models: Product Distribution Franchises and Business Format Franchises. However, the disclosure document explicitly states that it is relevant only to those considering a Business Format Franchise.
Big O Tires uses specific terminology to differentiate between the two franchise models within the document. Franchisees operating under the Business Format Franchise model are referred to as "Business Format Franchisees," while those with Product Distribution Franchises are called "Product Distribution Franchisees." To avoid confusion, the document clarifies that any references to "your franchise" or "your Franchise Agreement" pertain exclusively to the Business Format Franchise Agreement.
It's important to note that Big O Tires is transitioning from the Product Distribution Franchise model to the Business Format Franchise model. As of March 31, 2025, there were 437 stores operating as Business Format Franchises (excluding company-owned stores). While Big O Tires is primarily offering new franchises under the Business Format model, they anticipate that Product Distribution Franchises will continue to exist within their network for a considerable period.