What interest rate does Big O Tires charge for 'Other Financing' programs?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 7: General Interest Rate Terms: Unless otherwise noted, the interest rate on loans provided by Big O will be the "prime rate" as published in the Wall Street Journal plus 3% per annum. This may vary as negotiated. Unless otherwise noted, the increased interest rate on default is the lesser of 18% per year or the highest rate permitted by applicable law.
Source: Item 10 — FINANCING (FDD pages 48–55)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the interest rate for 'Other Financing' is not explicitly detailed. However, the document does state general interest rate terms for loans provided by Big O Tires. Unless otherwise noted, the interest rate will be the "prime rate" as published in the Wall Street Journal plus 3% per annum, but this may vary as negotiated.
It is important to note that Big O Tires retains the discretion to modify financing terms or deny participation in any financing programs. This decision can be based on factors such as accounting rules, business and regulatory requirements, the franchisee's creditworthiness, the benefit to Big O Tires, and the availability of funds.
Prospective franchisees should inquire with Big O Tires directly to obtain specific details regarding the interest rates and terms applicable to 'Other Financing' programs, as these can vary and are subject to negotiation and the franchisor's discretion.