What is the function of the Franchise Advisory Council for Big O Tires franchisees?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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25. FRANCHISE ADVISORY COUNCIL
- 25.01 Franchise Advisory Council. Big O has established a Franchise Advisory Council ("FAC"), consisting of franchisee representatives, which is designed to provide input to Big O's strategic business plan as may be presented from time to time by Big O and to present viewpoints to Big O's management on issues involving the franchise relationship. FAC members shall be chosen by Franchisees in accordance with policies established by Big O from time to time. Generally, FAC members will be elected by franchisees who are members of BOTDA. Franchisee elected BOTDA board members will elect one BOTDA board member per each region established by Big O from time to time, along with the BOTDA board chairman, to serve on the BEC. The appointed BEC franchisee members will constitute the FAC membership.
- 25.02 Special Interest Issues. Big O has granted the FAC the authority to participate with Big O's management in making policy decisions relating to issues in which the FAC is deemed to have a special interest. The issues of "Special Interest" include, but may not be limited to:
- (a) advertising policies and the creation of a National Marketing Program;
- (b) standards of operation; and the implementation of new programs which may require the addition of new equipment and fixtures for the store;
- (c) selection of Products and Services offered at Big O Stores;
- (d) changes in the Licensed Marks anticipated to require the majority of franchisees to expend more than five thousand dollars ($5,000.00) per Store; and
- (e) input in establishment of warranties and guaranties.
- 25.03 Disapproval of Management Proposal. With respect to those issues in which the FAC has a Special Interest, the FAC may, after consulting with the members of BOTDA, vote to disapprove a proposal of Big O's management. If, pursuant to established procedures which have been approved by Big O, the FAC shall disapprove a proposal of Big O's management, the proposal may only become effective if, following a presentation to a committee of Big O's management established for the purposes of addressing the issues with the FAC representative, the Big O committee votes to adopt management's proposa
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, the Franchise Advisory Council (FAC) serves as a liaison between franchisees and Big O Tires management. The FAC's primary functions are to provide input on Big O's strategic business plans and to present franchisee viewpoints on issues concerning the franchise relationship. FAC members are elected by franchisees, typically those who are also members of the Big O Tire Dealers of America (BOTDA). Franchisee-elected BOTDA board members then elect one BOTDA board member per region, along with the BOTDA board chairman, to serve on the BEC, which constitutes the FAC membership.
The FAC has the authority to participate with Big O Tires management in making policy decisions on issues of special interest. These special interest issues include advertising policies, the creation of a National Marketing Program, standards of operation, the implementation of new programs requiring significant capital expenditure (over $5,000 per store) on new equipment and fixtures, the selection of Products and Services offered at Big O Tires stores, and input on the establishment of warranties and guarantees.
In cases where the FAC disapproves a management proposal on a special interest issue, the proposal can only become effective if a committee of Big O Tires management, established to address issues with the FAC representative, votes to adopt the proposal after a presentation. This process ensures that franchisee concerns are considered while allowing Big O Tires to ultimately make final decisions. The Franchise Advisory Council also has the authority to engage an independent auditor to audit certain components of the Big O Program Product Prices.
For a prospective Big O Tires franchisee, the FAC provides a formal mechanism to influence the direction of the franchise system and address concerns with the franchisor. It gives franchisees a voice in key decisions that affect their businesses, such as marketing strategies, operational standards, and product offerings. However, franchisees should be aware that while the FAC can disapprove management proposals, Big O Tires retains the ultimate authority to implement its decisions.