What is the incentive offered by Big O Tires for referrals from existing franchisees?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchise Referral Program. We encourage referrals from our existing franchisees of a prospective franchisee to us. Our referral program offers a $10,000 referral fee to the person who refers to us a franchisee prospect that we are not currently in discussions with and have not previously contacted. The referral fee is payable only if the referred prospect becomes a Big O franchisee. The referral fee is applied as a credit against an existing franchisee's trade account 30 days after the opening of the new Big O Store. The incoming prospective franchisee must have signed a Franchise Agreement and the initial franchise fee must have been paid to us before we will apply the credit. We reserve the right at any time to cancel, modify, amend, or terminate our referral program. If a franchisee wants to benefit from the referral program, the referring franchisee must be in good standing.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–12)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the company offers a referral program to its existing franchisees. Under this program, a franchisee who refers a prospective franchisee to Big O Tires can receive a $10,000 referral fee. However, this fee is subject to specific conditions.
The $10,000 referral fee is only applicable if Big O Tires was not already in discussions with the referred prospect or had not previously contacted them. Furthermore, the fee is contingent upon the referred prospect actually becoming a Big O Tires franchisee. This means the prospect must sign a Franchise Agreement and pay the initial franchise fee to Big O Tires.
If all conditions are met, the $10,000 referral fee is applied as a credit to the existing franchisee's trade account. This credit is applied 30 days after the new Big O Tires store opens. The referring franchisee must also be in good standing with Big O Tires to be eligible for the referral fee. Big O Tires retains the right to modify or terminate the referral program at any time, so franchisees should confirm the program's current terms before making a referral.
This referral program can be a mutually beneficial arrangement. Existing franchisees are incentivized to help grow the Big O Tires network, while Big O Tires benefits from franchisee insights and connections to find potentially qualified new franchisees. Prospective franchisees should inquire about the specific criteria for "good standing" to ensure they can participate in the referral program.