What is the initial term length for the lease agreement summarized in the Big O Tires FDD?

According to Big O Tires' 2025 Franchise Disclosure Document, the initial term for the lease agreement is ten years. This means that a new franchisee can expect to commit to a ten-year lease for the business premises.

Big O Tires also offers options to extend the lease for two additional terms of five years each. To exercise these options, the franchisee must not be in default of any lease terms at the time of giving the renewal notice and at the end of the current term. Additionally, the Franchise Agreement must be renewed by the franchisee and Big O Tires. The franchisee must notify the landlord in writing at least 180 days before the lease expiration to extend the lease.

During these extended terms, the lease will remain under the same terms and conditions, except that there will be no further extension options unless expressly granted by the landlord in writing. The annual base rent during the extended terms will be subject to adjustment according to the provisions outlined in the lease agreement. This provides Big O Tires franchisees with potential long-term stability in their business location, assuming they meet the conditions for renewal and extension.