What happens if the Big O Tires Franchise Agreement is terminated?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
20. POST TERMINATION OBLIGATIONS
- 20.01 Post-Termination Obligations. Upon the Expiration or Termination of this Agreement by any means or for any reason, Franchisee shall immediately:
- (a) Cease to be a Franchisee of Big O and cease to operate the former Franchised Business under the Big O System. Franchisee shall not thereafter, directly or indirectly, represent to the public that the former Franchised Business is or was operated or in any way connected with the Big O System or hold itself out as a present or former Franchisee of Big O;
- (b) Pay all sums owing to Big O. Upon termination for any default by Franchisee, such sums shall include damages, costs, and expenses incurred by Big O as a result of the default;
- (c) (i) Return to Big O the Manual and any training modules or other proprietary information and supplements thereto and all trade secrets and confidential materials owned or licensed by Big O and all copies thereof other than Franchisee's copy of the Franchise Agreement, copies of any correspondence between the parties, and any other document which Franchisee reasonably needs for compliance with any applicable law; (ii) return or discontinue use of all forms, advertising matter, marks, devises, insignias, slogans, designs, signs, any computer systems including software and/or hardware; and (iii) discontinue the use of all copyrights, Licensed Marks, trade names and patents now or hereafter applied for or granted in connection with the operation of the Franchise;
- (d) Provide to Big O, upon its request, a complete list of any outstanding obligations that Franchisee may have to any third parties including outstanding customer orders. Big O shall have the right, but not the obligation, to fill any such outstanding customer orders generated by Franchisee and in such event, Franchisee shall immediately reimburse Big O for any costs or expenses incurred by Big O in doing so. In addition, Big O shall have the right to cancel any orders placed by Franchisee for which delivery has not been made;
- (e) Take such action as may be required by Big O to transfer and assign to Big O or its designee all telephone numbers, white and yellow page telephone references and advertisements, internet
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, several obligations arise upon the expiration or termination of the Franchise Agreement. The franchisee must immediately cease operating as a Big O Tires franchisee and discontinue using the Big O System. They cannot represent themselves as being connected with Big O.
Upon termination, the franchisee is obligated to pay all outstanding sums to Big O Tires, including damages, costs, and expenses if the termination resulted from the franchisee's default. The franchisee must return the operations manual, training modules, proprietary information, and confidential materials to Big O Tires. They must also return or discontinue the use of all forms, advertising materials, marks, signs, and computer systems, and discontinue using all copyrights, licensed marks, trade names, and patents associated with the franchise.
Big O Tires may request a list of the franchisee's outstanding obligations to third parties, including customer orders. Big O has the right, but not the obligation, to fulfill these orders, and the franchisee must reimburse Big O for any related costs. Big O also has the right to cancel any unfulfilled orders placed by the franchisee. The franchisee must transfer and assign all telephone numbers, directory listings, and internet references to Big O Tires or its designee.