Is a Big O Tires franchisee required to comply with the Americans with Disabilities Act (ADA) and environmental/hazardous substances laws regarding the subleased premises?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
22.02 Compliance with Laws. Franchisee shall comply with all applicable federal, state, and local laws, rules and regulations, including, without limitation, environmental laws related to tire disposal. Big O has no obligation to advise Franchisee of any legislative or other legal developments that may affect its Franchised Business. Franchisee is solely responsible for inquiring about and becoming familiar with all applicable laws, rules and regulations, and determining those actions required for compliance. Franchisee shall obtain any and all permits, certificates, and licenses required for the full and proper conduct of the Franchised Business.
Franchisee agrees to protect, defend, indemnify, and hold Big O and its Affiliates, their directors, officers, shareholders, employees and agents, jointly and severally, harmless from and against all claims, actions, proceedings, damages, costs, expenses and other losses (including death) and liabilities, consequently, directly or indirectly incurred (including, without limitation, attorneys', accountants' and other related fees) as a result of, arising out of, or connected with the operation of the Franchised Business, including, without limitation, the failure of Franchisee to comply with any relevant environmental and tire disposal laws or any labor or employment laws.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, franchisees are responsible for complying with all applicable laws. Specifically, the franchisee must conduct their retail sales and service of tires, wheels, under-car parts, and other automotive accessories, along with all related automotive service work, in compliance with all applicable laws and the Franchise Agreement. This obligation extends to all federal, state, and local laws, rules, and regulations, including environmental laws related to tire disposal.
Big O Tires does not have an obligation to advise the franchisee of any legislative or legal changes that could affect their franchised business. It is the franchisee's sole responsibility to be aware of and understand all applicable laws, rules, and regulations, and to take the necessary actions to ensure compliance. This includes obtaining all required permits, certificates, and licenses for operating the franchised business.
Furthermore, the franchisee is required to protect, defend, indemnify, and hold Big O Tires harmless from any claims, actions, damages, costs, and expenses resulting from the operation of the franchised business. This includes any failure by the franchisee to comply with relevant environmental and tire disposal laws, as well as labor and employment laws. Therefore, a Big O Tires franchisee is responsible for complying with laws such as the ADA and environmental regulations concerning the subleased premises.