Is a Big O Tires franchisee authorized to make any contract on behalf of Big O?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Agreement is intended by the parties hereto to create a fiduciary relationship between them nor to constitute Franchisee or Franchisee's employees or contractors as an agent, legal representative, subsidiary, joint venturer, partner, employee, or servant of Big O for any purpose whatsoever.
It is understood and agreed that Franchisee is an independent contractor and is in no way authorized to make any contract, warranty, or representation or to create or imply any obligation on behalf of Big O.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, a franchisee is explicitly defined as an independent contractor and is not authorized to enter into any contracts on behalf of Big O Tires. This is a standard practice in franchising, where franchisees operate independently and are responsible for their own business dealings.
Specifically, the FDD states that nothing within the franchise agreement should be interpreted as creating a fiduciary relationship or designating the franchisee as an agent, legal representative, subsidiary, joint venturer, partner, employee, or servant of Big O Tires. This reinforces the independent nature of the franchisee's business operations.
This provision protects Big O Tires from being held liable for the franchisee's actions and ensures that the franchisee understands they are operating their own business. It is crucial for prospective franchisees to understand this independent contractor status, as it affects their legal and financial responsibilities.