What is the Big O Tires franchisee's responsibility for internet connection costs related to transmitting Shared Information?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
The Shared Information shall be exported from the Software System and transmitted to Big O, which transmission may involve transmission through the Internet or other prescribed means, as part of the end-of-day or end-of-month processing performed by Franchisee, as discussed in Schedule A.
Franchisee will maintain a high-speed Internet connection at Franchisee's sole cost until such time as Big O may develop an extranet or other system that provides the required connection to all franchisees for transmission of the Shared Information.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, franchisees are responsible for maintaining a high-speed internet connection at their own expense. This requirement is in place to ensure the reliable transmission of "Shared Information" to Big O Tires. Shared Information includes customer and service history, store-level sales and profit data, and product movement data. Franchisees must maintain this high-speed connection until Big O Tires develops an extranet or other system that provides the required connection for all franchisees.
This means that a prospective Big O Tires franchisee needs to factor in the ongoing cost of a high-speed internet connection when assessing the financial viability of the franchise. This cost is in addition to other technology-related expenses, such as the initial investment in the Software System and any ongoing maintenance or support fees. The franchisee's responsibility extends to resolving any hardware or communication issues that are not attributable to the Software System or the Consumer Database to ensure uninterrupted data transmission.
The FDD also emphasizes the importance of franchisees cooperating with Big O Tires and its consultants to troubleshoot any issues that prevent the reliable transmission of Shared Information. This cooperation may involve granting access to the franchisee's computer system for diagnostic and resolution purposes. While the franchisee bears the cost of the internet connection, Big O Tires is responsible for ensuring that the Software System can capture and transmit the required information.
It's important for prospective franchisees to inquire about the typical bandwidth requirements for transmitting Shared Information and to obtain an estimate of the monthly cost of a suitable high-speed internet connection in their area. They should also ask about Big O Tires's plans for developing an extranet or other system that would eliminate the need for franchisees to maintain their own high-speed connections, as this could potentially reduce operating costs in the future.