What information must a Big O Tires franchisee provide to Big O Tires when offering a transfer?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 18.04 Pre-Conditions to Franchisee's Assignment. If Franchisee or any Owner desires to make a Transfer, such person or Entity must comply with the following terms, conditions, and procedures to effectuate a valid Transfer:
- (a) If any proposed assignment of any rights under this Agreement, or if any other Transfer would in the reasonable opinion of Big O result in a Change of Control:
- (i) The transferee must apply for a Big O franchise and must meet all of Big O's then current standards and requirements for becoming a Big O franchisee, which standards and requirements need not be written and which standards may vary with the circumstances (such as past or anticipated sales volume or real estate value of a particular Store).
- (ii) The transferee or Franchisee shall, at Big O's election, execute the then current form of Franchise Agreement generally being offered to franchisees in the State in which the Big O Store is located. Such agreement shall generally provide for a new term equal to the term of the standard Big O franchise agreement then being offered, and may include, among other matters, a different fee structure, increased fees, different terms and conditions, a modified Trade Area and different purchase requirements;
- (iii) The transferee, Franchisee, and Big O shall execute an Agreement and Consent to Assignment of Big O Tires Store in the form then in use by Big O;
- (iv) Notwithstanding the foregoing, Big O or its assignee may, within thirty (30) days after receipt of notice as provided in Section 18.04(b)(i), below, elect the Option to purchase the interest being offered by Franchisee or any Owner at the same terms, conditions and fees set forth in such notice;
- (a) If any proposed assignment of any rights under this Agreement, or if any other Transfer would in the reasonable opinion of Big O result in a Change of Control:
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, a franchisee wishing to transfer their franchise must meet several pre-conditions. The prospective transferee must apply for a Big O Tires franchise and meet all of Big O's current standards for new franchisees. These standards do not have to be written and can vary based on circumstances like sales volume or real estate value.
Additionally, at Big O Tires's discretion, the transferee or the franchisee may need to execute the current form of the franchise agreement for the state in which the Big O Tires store is located. This new agreement would typically have a term equal to the standard Big O Tires franchise agreement and could include different fees, terms, conditions, a modified trade area, and different purchase requirements. All parties involved—the transferee, the franchisee, and Big O Tires—must execute an Agreement and Consent to Assignment of Big O Tires Store, using the form then in use by Big O Tires.
Big O Tires also retains the right to inspect the franchisee's store before approving a transfer involving a change in control. Following this inspection, Big O Tires may create a "Punch List" detailing necessary repairs, maintenance, or upgrades to the store, which must be completed as a condition of the transfer's approval. The franchisee must also comply with all other applicable transfer requirements as outlined in the manual or in writing by Big O Tires.