Does Big O Tires guarantee the achievement of the customer service level objectives?

.

14.04 Warranties and Guaranties.

(a) Franchisee agrees to issue and honor warranties and guarantees written on certain Products and Services sold to consumers in accordance with the terms and procedures prescribed in the Manual, including but not limited to the Big O Program Products Warranty. Any such warranty or guaranty will be offered through all Big O Stores on a nondiscriminatory basis, subject to such exceptions as determined by Big O from time to time (such as test programs). Only warranties or guarantees sponsored or approved by Big O or its Affiliates may be offered or honored by Franchisee (other than those required by law). Franchisee and Big O shall only honor warranties and guaranties on Products and Services that have been sold to and returned by consumers in accordance with the terms and procedures prescribed in the Manual. Franchisee agrees to honor any and all warranties and guarantees sponsored or approved by Big O, regardless of where or by whom they were issued. Franchisee shall make no charge to a customer for honoring such a warranty or guaranty unless the charge is permitted by the express terms of the warranty or guaranty or the then current Manual. Big O agrees not to change or alter any warranty or guaranty without

giving Franchisee at least thirty (30) days prior written notice. Warranties or guarantees issued prior to any such revocation or modification shall be honored according to their terms as interpreted in the Manual.

• (b) Big O will absorb Franchisee's costs for (i) claims related to replacement due to road hazards and/or workmanship and materials contemplated in the terms of the applicable Big O Program Products Warranty for Big O I Tires in accordance with the terms and procedures prescribed by the Manual; and (ii) claims related to the prorated manufacturer's workmanship and material warranty for Big O II Tires and any other tires that are Big O Program Products in accordance with the terms and procedures prescribed by the Manual (provided, however, that the warranty costs so absorbed will be included in the Warranty Costs used to determine the Big O Program Products Price). Franchisee will cover all other warranties.
• (c) As part of the warranties and guarantees under this Section 14.04, Big O may from time to time establish requirements to honor, offer, and/or otherwise participate in warranty programs for products sold other than Big O Program Products. Specifically, Big O may require participation in a single designated warranty program for those products, or the satisfaction of certain minimum requirements for any warranty programs administered by Franchisee or by third parties. These requirements may vary by location, including due to variations in state warranty laws. Franchisee shall comply with any requirements applicable for its location.

Source: Item 23 — RECEIPTS (FDD pages 102–535)