Is a Big O Tires franchisee required to sign a Technology Agreement?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisees must implement, maintain and use computerized information, communication and management systems as periodically prescribed by us. This includes electronic point-of-sale systems and systems that enable you to communicate by e-mail with us, have access to the Internet, transmit sales and consumer data to us, participate fully in any intranet established by us (for instance, for claim management and other purposes) and participate in interactive remote learning and training.
You must sign a Technology Agreement (the "Technology Agreement") with us and a Navex EULA with Navex. When the Big O franchise system converts to the Tekmetric BOT POS System, you will be required to enter a separate Technology Agreement and Tekmetric EULA with Big O. The forms of these agreements are attached as Exhibit J-1 and Exhibit J-2 to this disclosure document.
You must acquire the BOT POS System. The estimated initial cost for the standard configuration of the BOT POS System is between $20,500 and $33,500 depending upon the current hardware, software, data standards, and professional services, which is paid by the Franchisee. An additional $9,050 to $10,150 in costs will apply if you originally acquire the BOT POS System from Navex and later convert to the Tekmetric system. These costs do not include taxes, shipping fees, lease fees (if applicable) or the travel expenses for the POS trainer. This hardware may be leased from third parties. The system includes a Navex or Tekmetric license, hardware, software, installation, training, and data
conversion. Franchisees acquiring the BOT POS System are also responsible for all ongoing costs of the BOT POS System, such as maintenance, support, and training. The subscription costs for the ongoing license to the software, and related maintenance, support and training currently offered by our supplier Navex, which you are required to obtain, currently total $304 per month as of the date of this Disclosure Document (See Item 6). The subscription costs for the system offered by Tekmetric upon the transition to that system will initially be $340 per month. You may choose to acquire additional services from Navex or Tekmetric at your option, for additional fees. You must: (a) replace and upgrade hardware and other equipment and software periodically if required by us or in accordance with specifications of its hardware and software licensors, and the replacement equipment must be purchased from Big O or a supplier approved by Big O, and (b) comply with all policies concerning information systems established by Big O periodically in its sole discretion, including but not limited to arranging for off-site back-up of all data at Franchisees sole cost and expense. There is no contractual limitation on our right to require maintenance, repairs, replacements, upgrades, or updates for hardware and software used in your Big O Store, and except for the services provided by Navex under the Navex EULA or by Tekmetric under the Tekmetric EULA for the monthly fees described above, there is no obligation on us or any third party to provide any of these services to you.
Under the Navex EULA and the Tekmetric EULA, you will be the licensee of Navex and Tekmetric (under a sublicense from Big O), respectively, for certain software ("Licensed Software"). Initially, the Licensed Software will provide for an electronic point-of-sale system that will track goods and services sold by you and the inventory held by you. Also, under each of the Navex EULA and Tekmetric EULA, Navex and Tekmetric (respectively) will provide, and you are required to purchase, maintenance and support services for the Licensed Software. Fees charged to you under the Navex EULA and Tekmetric EULA are set forth in Section 6 above.
In addition, software has been developed by Navex and Tekmetric, to enable you to (and under the Technology Agreement you must) collect and transmit to us certain "Shared Information", which may include customer and service history, store-level sales and profit information, product movement data, inventory status information and other information. We may also develop the Licensed Software to enable us to transmit information to you, such as information regarding new products, cost changes, recommended pricing changes and inventory availability. (Technology Agreement, Section 3)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEM AND TRAINING (FDD pages 55–73)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, franchisees are required to sign a Technology Agreement. This agreement covers the use of computerized information, communication, and management systems as prescribed by Big O Tires. These systems include electronic point-of-sale (POS) systems that enable franchisees to communicate via email, access the internet, transmit sales and consumer data, participate in any intranet established by Big O Tires, and engage in interactive remote learning and training. Franchisees must also sign a Navex EULA with Navex. When the Big O franchise system converts to the Tekmetric BOT POS System, franchisees will be required to enter a separate Technology Agreement and Tekmetric EULA with Big O.
The initial estimated cost for the standard configuration of the BOT POS System ranges from $20,500 to $33,500, depending on current hardware, software, data standards, and professional services. This cost is borne by the franchisee. If a franchisee originally acquired the BOT POS System from Navex and later converts to the Tekmetric system, an additional $9,050 to $10,150 in costs will apply. These costs exclude taxes, shipping fees, lease fees (if applicable), and travel expenses for the POS trainer. The system includes a Navex or Tekmetric license, hardware, software, installation, training, and data.
Under the Technology Agreement, franchisees must collect and transmit certain "Shared Information" to Big O Tires, including customer and service history, store-level sales and profit information, product movement data, and inventory status information. Big O Tires may use this information for customer relationship management, warranty support and services, national and local marketing, and to determine consumer data, trends, and market analysis. Upon termination of a franchise agreement subject to the Technology Agreement, Big O Tires will not market to any local customer of the terminated store for two years, provided the store is in full compliance with all termination provisions of its Franchise Agreement and certain other conditions are met, subject to exceptions for warranty work by another store.
If a franchisee opts to integrate their accounting system with the BOT POS system, QuickBooks Advanced Edition will also be required. While Big O Tires does not currently mandate any specific type or brand of software beyond the BOT POS System, they reserve the right to revise this policy in the future, requiring franchisees to obtain specific systems or change any previously designated management system. In such cases, franchisees must purchase or lease all software and hardware designated by Big O Tires to implement any required information and management systems, including point of sale systems, inventory control systems, and communication systems. However, if Big O Tires requires implementation of any new system more frequently than once in two years, they will be responsible for covering the costs of updating the software.