When is the initial $10,000 deposit due for a Big O Tires franchise?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
If you apply for a Big O franchise using your first option rights, the franchise deposit of $10,000 must be paid with your application to exercise your first option rights. The balance of the initial franchise fee must be paid to us at the time specified by us in our notice of the right to exercise first option rights, but in no event later than the earlier of: (a) date you sign the new Franchise Agreement, or (b) 120 days from the deadline for submitting an application to Big O to exercise your first option rights (this deadline is 30 days after Big O gives notice that the franchisee may exercise its first option rights). The franchise deposit becomes nonrefundable upon our approval of your franchise application. See Item 12 for a more detailed discussion on your First Option rights.
Source: Item 5 — INITIAL FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the timing of the $10,000 franchise deposit depends on the specific circumstances of the franchise agreement. For existing franchisees applying for a new Big O Tires franchise within five miles of their current location using their first option rights, a $10,000 franchise deposit is due with the application to exercise these rights.
The balance of the initial franchise fee is due at the time specified in the notice of the right to exercise first option rights, but no later than the earlier of the date the new Franchise Agreement is signed, or 120 days from the deadline for submitting an application to Big O to exercise first option rights. This application deadline is 30 days after Big O Tires gives notice that the franchisee may exercise its first option rights.
It's important to note that the franchise deposit becomes nonrefundable once Big O Tires approves the franchise application. Prospective franchisees should carefully review Item 12 of the FDD for a more detailed explanation of First Option rights and consult with Big O Tires to clarify the specific payment schedule applicable to their situation.