How can a Big O Tires franchisee terminate the payment agreement described in Item 23?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
and conditions.
NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties acknowledge and agree as follows:
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- Sublicense to Use Subscription Services. Pursuant to the terms of the Master SaaS Agreement, Big O sublicenses to Franchisee User the non-exclusive, nonsublicensable, non-transferable right to use and access the Subscription Services, in accordance with the terms of this SaaS User Agreement. The Subscription Services shall be solely used in connection with the operation of Franchisee User's Big O Tires store(s) operated under its franchise agreement(s) with Big O (collectively, the "Franchise Agreement").
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- Fees. For each Big O Tires store operated by Franchisee User, Franchisee User shall pay a one-time implementation fee of $250 to Big O upon execution of this Agreement, and a monthly fee of $340 to Big O on the first day of each month, all of which may be charged by Big O to Franchisee User by Automatic Clearing House charge (or required by such other payment method as Big O may specify from time to time). In the event that Franchisee User lapses in its payment obligations to Big O under this SaaS User Agreement, Franchisee User will be in default of this SaaS User Agreement. Franchisee User shall also be responsible for paying to Big O any and all taxes (including but not limited to sales and/or use taxes, value added taxes, and stamp taxes), fees, tariffs, duties, or other similar levies imposed or required by any government, governmental unit or similar authority with respect to the fees made or payments received in connection with the Subscription Services. For any fees that are past due under this SaaS User Agreement, Big O may, at its option, charge interest at the lower of the rate of 12 percent per annum or the maximum rate allowable at law. All fees paid are non-refundable. Franchisee User is not obligated to pay any
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, Item 23 discusses obligations under a SaaS User Agreement. Specifically, it mentions that the franchisee ("Franchisee User") is granted a sublicense to use and access subscription services related to the operation of their Big O Tires store, as per the Master SaaS Agreement.
The franchisee is obligated to pay a one-time implementation fee of $250 upon execution of the agreement. Additionally, they must pay a monthly fee of $340 to Big O Tires on the first day of each month. These payments may be charged via Automatic Clearing House (ACH) or another method specified by Big O Tires. Failure to meet these payment obligations constitutes a default under the SaaS User Agreement.
The document does not explicitly state how a franchisee can terminate the SaaS User Agreement or the payment obligations associated with it. It only mentions the consequences of failing to meet payment obligations. A prospective franchisee should seek clarification from Big O Tires regarding the specific procedures and conditions required to terminate the SaaS User Agreement and any associated payment obligations.