Must a Big O Tires franchisee follow maximum pricing set by Big O?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Periodically Big O may establish maximum pricing for certain products or services, for certain customers and/or for certain situations. You must follow this maximum pricing, but you are not required to sell products and services at or below any particular maximum price if such a requirement would be unlawful. Big O may also establish minimum advertised pricing for advertising of certain products or services, for certain customers and/or for certain situations. You must follow this minimum pricing in your advertising, but you are not required to advertise products and services at or above any minimum price if such a requirement would be unlawful. Any minimum advertised pricing that we establish will only apply to advertising of prices and will not restrict you with regard to the price at which the products and services are actually sold (Franchise Agreement, Section 10.02).
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 78–80)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, Big O Tires may establish maximum pricing for certain products or services, customers, or situations, and franchisees must adhere to these maximum prices. However, a Big O Tires franchisee is not required to sell products and services at or below any particular maximum price if such a requirement would be unlawful.
Big O Tires may also set minimum advertised pricing for certain products or services, customers, or situations. Franchisees must follow this minimum pricing in their advertising. However, franchisees are not required to advertise products and services at or above any minimum price if such a requirement would be unlawful. Any minimum advertised pricing that Big O Tires establishes will only apply to advertising of prices and will not restrict franchisees with regard to the price at which the products and services are actually sold.
This means that while Big O Tires can influence pricing through maximum price controls and minimum advertised prices, franchisees retain some flexibility in setting actual prices, particularly if adhering to the set prices would violate any laws. This allows Big O Tires to maintain some level of price consistency across its franchise network while also allowing franchisees to adapt to local market conditions and legal requirements.