Will the landlord assign warranties to the Big O Tires tenant?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
giving Franchisee at least thirty (30) days prior written notice. Warranties or guarantees issued prior to any such revocation or modification shall be honored according to their terms as interpreted in the Manual.
- (b) Big O will absorb Franchisee's costs for (i) claims related to replacement due to road hazards and/or workmanship and materials contemplated in the terms of the applicable Big O Program Products Warranty for Big O I Tires in accordance with the terms and procedures prescribed by the Manual; and (ii) claims related to the prorated manufacturer's workmanship and material warranty for Big O II Tires and any other tires that are Big O Program Products in accordance with the terms and procedures prescribed by the Manual (provided, however, that the warranty costs so absorbed will be included in the Warranty Costs used to determine the Big O Program Products Price).
Franchisee will cover all other warranties.
- (c) As part of the warranties and guarantees under this Section 14.04, Big O may from time to time establish requirements to honor, offer, and/or otherwise participate in warranty programs for products sold other than Big O Program Products.
Specifically, Big O may require participation in a single designated warranty program for those products, or the satisfaction of certain minimum requirements for any warranty programs administered by Franchisee or by third parties.
These requirements may vary by location, including due to variations in state warranty laws.
Franchisee shall comply with any requirements applicable for its location.
Franchisee acknowledges that these requirements may include payments to Big O, its affiliates, and any third party administrator for participation in the warranty programs, funding of the warranty programs, and other services related to those warranty programs, which fees are subject to change from time to time upon notice from Big O to Franchisee.
Franchisee must comply with any applicable laws with regard to any warranties and guaranties that it offers.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
Based on the 2025 Big O Tires Franchise Disclosure Document, the landlord's assignment of warranties to the Big O Tires tenant is not addressed. The document does outline some warranty responsibilities of Big O Tires and the franchisee. Big O Tires will absorb costs for specific claims related to replacement due to road hazards, workmanship, and materials as defined in the Big O Program Products Warranty. The franchisee, however, is responsible for covering all other warranties. Big O Tires may also establish requirements for franchisees to participate in warranty programs for products other than Big O Program Products, potentially requiring payments from the franchisee.
Additionally, the FDD states that warranties or guarantees issued prior to any revocation or modification shall be honored according to their terms as interpreted in the Manual. This suggests that while the landlord's role in warranty assignments isn't specified, Big O Tires has established procedures and may implement warranty programs that franchisees must follow. The franchisee must also comply with all applicable laws regarding the warranties and guarantees they offer.
Because the FDD does not specify whether the landlord assigns warranties to the Big O Tires tenant, prospective franchisees should seek clarification from Big O Tires regarding the landlord's responsibilities for warranties and how these might affect the franchisee's obligations. Understanding the interplay between the lease agreement, the franchise agreement, and local laws is crucial for managing warranty-related liabilities and customer expectations.