What is the Big O Tires franchisee's obligation regarding the cost of alterations, improvements, additions, and the preparation of 'as-built' plans for the leased premises?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 6.03 Real Estate Improvements, Equipment and Signage. Franchisee agrees to construct all improvements to the Premises and the Store in compliance with plans and specifications approved by Big O. Franchisee agrees to purchase, lease or otherwise use in the establishment and operation of the Big O Store only those fixtures, equipment, signs and hardware and/or software that Big O has approved as meeting its specifications and standards for quality, design, appearance, function and performance. Franchisee shall purchase or lease approved brands, types or models of fixtures, equipment, and signs only from suppliers designated or approved by Big O. Franchisee agrees to place or display at the Premises only such signs, logos and display materials that Big O approves from time to time.
- 6.04 Conditions to Opening. Franchisee agrees, at its sole expense, to do or cause to be done the following prior to opening the Big O Store for business: (i) secure all required financing; (ii) obtain all required permits and licenses; (iii) construct all required improvements and decorate the Store in compliance with approved plans and specifications approved by Big O pursuant to Section 7.01(b) below; (iv) purchase (or lease) and install all fixtures, equipment and signs required by Big O for the Big O Store; (v) purchase an opening inventory of tires and supplies in accordance with Section 14.01 and 14.02; (vi) provide Big O with copies of all required insurance policies, or such other evidence of coverage and payment as Big O requests; and (vii) provide Big O with any other documents as may be reasonably required by Big O, including but not limited to financing statements.
- 6.05 Commencement of Business. Franchisee agrees to open the Big O Store for business within fourteen (14) days after Big O notifies Franchisee that the conditions set forth in this Section 6 have been satisfied. Unless otherwise agreed in writing by Big O and Franchisee, Franchisee has sixteen (16) months from the Effective Date of this Agreement within which to have its Big O Store opened and operating ("Development Period").
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, the franchisee is responsible for constructing all improvements to the premises and store according to Big O Tires' approved plans and specifications. This includes purchasing or leasing approved fixtures, equipment, signs, and hardware/software from designated or approved suppliers. The franchisee must also display only approved signs, logos, and display materials at the premises.
Prior to opening a Big O Tires store, the franchisee is solely responsible for securing financing, obtaining permits and licenses, constructing improvements, decorating the store according to approved plans, and purchasing/installing required fixtures, equipment, and signs. They must also purchase an opening inventory of tires and supplies, provide copies of required insurance policies, and furnish any other reasonably required documents to Big O Tires.
The franchisee is required to modify prototype plans with the help of their architect or contractor to adapt to the specific conditions of the premises and to comply with local code requirements. Any revisions or modifications to these plans must receive approval from Big O Tires. Big O Tires states that its approval of revisions or modifications to the plans will not be unreasonably withheld.