Must a Big O Tires franchisee participate in the AMRA 'Motorist Assurance Program'?

According to Big O Tires's 2025 Franchise Disclosure Document, franchisees must participate in the AMRA "Motorist Assurance Program." This requirement is outlined in Item 16, which discusses restrictions on what a franchisee may sell. Participation necessitates that franchisees have personnel qualified by AMRA to provide specific services and offer a warranty on those services. The terms for participating in the program are established by AMRA.

This requirement means that prospective Big O Tires franchisees need to factor in the costs and requirements associated with AMRA participation. This includes ensuring that staff members receive the necessary AMRA qualifications, which may involve training and certification fees. Additionally, franchisees must be prepared to provide warranties on services rendered, potentially increasing operational costs and administrative overhead.

Compliance with the AMRA program is not optional, and franchisees are bound by the terms set by AMRA. This could impact the franchisee's service offerings and how they manage customer relations, as they must adhere to AMRA's standards and warranty provisions. Franchisees should carefully review the Facility Participation Agreement attached as Exhibit I to fully understand their obligations and the potential financial implications of this program.

Overall, the mandatory participation in the AMRA program is a significant aspect of operating a Big O Tires franchise. Franchisees must be prepared to meet the program's requirements to maintain compliance and provide the required services and warranties.