What is the franchisee required to do regarding Big O Tires national fleet account programs?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement also provides that you must comply with Big O's national fleet account policies and must participate in Big O's national fleet account programs, which are described in Item 11 (see paragraph 7 under "Continuing Obligations"). Also, periodically, we may institute pricing or discount programs in which the availability of lower prices or of discounts may depend, in whole or in part, on your meeting certain requirements established by us.
Tires. We sell lines of private label tires to Big O Tire Stores. These private label tires may be manufactured by Sumitomo Corporation, which holds a partial indirect ownership interest in us, or unaffiliated manufacturers. We may look to other manufacturers to produce tire products in the future. We do not manufacture tires. Most products are delivered to franchisees from the RDC servicing their area at a minimum of twice weekly. We commit to supply you with the Big O branded tire lines but we do not guarantee to supply you with any specific numbers or sizes of tires or with any other specific tire brands. However, we do have a fill rate policy which is described in Item 6, Note 2.
We are the only approved supplier of Big O private brand tires and other private brand products which are manufactured exclusively for us or TBC. We may add or change private brands of tires and other products periodically. We are also an approved supplier of various major brand tires.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, franchisees must comply with Big O's national fleet account policies and participate in Big O's national fleet account programs. This means a franchisee is obligated to adhere to the rules and guidelines set forth by Big O Tires for managing and serving national fleet accounts.
Transactions for these national fleet accounts are processed through third parties selected by Big O Tires. These third parties currently charge a fee of 1.25% of the transaction amount, plus an additional $0.95 per transaction. While Big O Tires does not currently collect a handling fee, they may institute one in the future.
Big O Tires also mentions that they receive a processing allowance from one tire manufacturer, amounting to up to 3% of the transaction for certain tire brands installed through the National Fleet Account programs. This allowance is intended to partially reimburse Big O Tires for the expenses they incur while administering the program, and they may receive additional allowances from this or other manufacturers in the future.