Can a Big O Tires franchisee use their store for purposes other than the franchised business?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not use your Store or the premises where your Store is located for any purpose other than your franchised Big O business. (Franchise Agreement, Section 10.01).
Except for any business already operating and identified in the Franchise Agreement, you may not engage in or open any business, other than as a Big O franchisee, without a waiver from Big O, which offers or sells tires, wheels, automotive services, or other products or services which compete with our products and services. (Franchise Agreement, Section 17.01).
You may not offer or sell from your Store any product or service which has not been selected or approved by us, and you may not offer or sell any product or service except in accordance with conditions we require. (Franchise Agreement, Section 14.02). However, for Conversion Stores during the three year period starting on the Commencement Date of the initial term of the Franchise Agreement, the Conversion Store may provide services ("Non-Standard Services") that meet both of the following: (a) were provided by it at the premises of its Big O Store immediately before the Commencement Date, and (b) are listed on a schedule to the Franchise Agreement (Franchise Agreement, Schedule 6, Section 9). The three year period during which the Conversion Store may offer Non-Standard Services may, in Big O's discretion, be extended on an annual basis. Big O will provide written confirmation of an extension of the period. You may not use the Licensed Marks for or in connection with the Non-Standard Services except that Non-Standard Services may be offered from your Store. If you provide any Non-Standard Service, you must provide conspicuous notice to the public by signage, disclaimers on invoices and/or other means that these Non-Standard Services are not provided by nor affiliated with Big O and you must provide warranties satisfactory to us through a third party carrier approved by us. We do not offer training, support or supervision in connection with the Non-Standard Services. You will immediately cease or modify any Non-Standard Services that present a threat to the health or safety of the public or any individual and/or that could cause the occurrence of any damages. You must indemnify us against any claim or liability arising from your offer, sale or provision of Non-Standard Services. (Franchise Agreement, Schedule 6, Section 10).
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 78–80)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from using their store for any purpose other than the franchised Big O Tires business. The FDD specifies that franchisees "may not use your Store or the premises where your Store is located for any purpose other than your franchised Big O business." This restriction is in place to ensure that the franchisee focuses solely on operating and growing the Big O Tires business and does not divert resources or attention to other ventures.
However, there is an exception for Conversion Stores. During the first three years of the initial franchise term, Conversion Stores may offer services that were already provided at the premises before the franchise agreement's commencement date, provided these services are listed on a schedule to the Franchise Agreement. This three-year period can be extended annually at Big O Tires's discretion. These services are referred to as "Non-Standard Services."
If a Conversion Store offers Non-Standard Services, they must clearly notify the public through signage and disclaimers that these services are not provided by or affiliated with Big O Tires. Additionally, the franchisee must provide warranties for these Non-Standard Services through a third-party carrier approved by Big O Tires. Big O Tires does not offer any training, support, or supervision for Non-Standard Services, and the franchisee must indemnify Big O Tires against any claims or liabilities arising from these services. Furthermore, the franchisee must immediately cease or modify any Non-Standard Services that pose a threat to public health or safety or could cause damages. This exception allows existing businesses that convert to a Big O Tires franchise to continue offering some of their previous services for a limited time, subject to certain conditions and restrictions.