Can a Big O Tires franchisee engage in other businesses that compete with Big O?

According to Big O Tires's 2025 Franchise Disclosure Document, franchisees are generally restricted from engaging in other businesses that compete with Big O Tires. The Franchise Agreement stipulates that, unless a business is already operating and identified within the agreement, a franchisee cannot operate or open any other business that offers or sells tires, wheels, automotive services, or other products and services that would compete with Big O Tires without first obtaining a waiver from Big O Tires.

This restriction is put in place to protect the Big O Tires brand and prevent franchisees from diverting resources or customers to competing ventures. It ensures that the franchisee's primary focus remains on developing and growing their Big O Tires franchise. The FDD also states that franchisees may not use their store or the premises where their store is located for any purpose other than their franchised Big O Tires business.

However, there are exceptions to this restriction. Conversion Stores, for example, may be allowed to provide Non-Standard Services (services they provided before becoming a Big O Tires franchise) for a limited time, subject to certain conditions and with proper disclosure to customers. These Non-Standard Services must not be affiliated with Big O Tires, and the franchisee must indemnify Big O Tires against any claims arising from these services. Franchisees should carefully review Section 17.01 of the Franchise Agreement and consult with Big O Tires to understand the specific conditions and requirements for operating any other business.