For a Big O Tires franchise, what is the permitted use of the subleased premises?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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5.1. Use. Sublessee shall use the Subleased Premises only for the purpose of conducting thereon the business of a Big O Tires retail store (hereinafter called the "Franchised Store") or a successor franchise operation of Sublessor pursuant to the terms and conditions of the Franchise Agreement. Franchised Store shall conduct retail sales and service of tires and wheels, under-car parts, and other automotive accessories and all related automotive service work in compliance with all applicable laws and the Franchise Agreement, and for no other use or purpose whatsoever; provided, however, that Sublessee hereby covenants and agrees that it will adhere to and be bound by all use requirements and restrictions set forth in the Master Lease.
- 5.2. Limitations of Use. In addition to the limitations set forth in Section 5.1 above, Sublessee's use of the Subleased Premises as provided in the Sublease shall be in accordance with the following:
- 5.2.1. Insurance. Sublessee shall not do, bring or keep anything in, on or about the Subleased Premises that will cause a cancellation of any insurance covering the Subleased Premises.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, a franchisee (or "Sublessee") can only use the subleased premises to operate a Big O Tires retail store, referred to as the "Franchised Store." This includes retail sales and service of tires, wheels, under-car parts, and other automotive accessories, as well as related automotive service work. This use must comply with all applicable laws and the Franchise Agreement. The franchisee must also adhere to all use requirements and restrictions outlined in the Master Lease.
This means a Big O Tires franchisee's business activities at the subleased location are strictly limited to those approved and defined by the franchisor. The franchisee cannot conduct any other type of business or service from the premises without violating the sublease agreement. This restriction ensures uniformity across all Big O Tires locations and maintains the brand's specific market positioning.
Furthermore, the FDD states that the franchisee must not do anything that could jeopardize the insurance coverage on the subleased premises. This implies the franchisee needs to be cautious about the types of activities and materials present in the store to avoid any actions that could increase insurance risk or lead to policy cancellation. This requirement protects both the franchisee and the sublessor from potential liabilities related to property damage or other insurable events.