What laws and regulations must a Big O Tires sublessee comply with regarding the subleased premises?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Sublessee shall comply with all laws, rules, regulations, resolutions and ordinances concerning the Subleased Premises or Sublessee's use of the Subleased Premises, including, without limitation, compliance with the Americans with Disabilities Act ("ADA") and all applicable environmental and hazardous substances laws and regulations and such compliance shall include, without limitation, the obligation at Sublessee's cost to alter, maintain or restore the Subleased Premises in compliance and conformity with all such laws, rules, regulations, resolutions and ordinances relating to the condition, use or occupancy of the Subleased Premises during the Term, which condition, use or occupancy shall be due to any action or omission of Sublessee.
Sublessee shall not do, bring or keep anything in, on or about the Subleased Premises that will cause a cancellation of any insurance covering the Subleased Premises.
Sublessee shall pay to Sublessor, within ten (10) days before the date Sublessor and/or Master Lessor is obligated to pay a further premium on the insurance, or within ten (10) days after the date that Sublessor delivers to Sublessee a written statement from Sublessor's and/or Master Lessor's insurance carrier stating that the rate increase was caused solely by an activity of Sublessee on the Subleased Premises as permitted in this Sublease, whichever date is later, a sum equal to the difference between the original premium and the increased premium.
Sublessee shall use the Subleased Premises only for the purpose of conducting thereon the business of a Big O Tires retail store (hereinafter called the "Franchised Store") or a successor franchise operation of Sublessor pursuant to the terms and conditions of the Franchise Agreement. Franchised Store shall conduct retail sales and service of tires and wheels, under-car parts, and other automotive accessories and all related automotive service work in compliance with all applicable laws and the Franchise Agreement, and for no other use or purpose whatsoever; provided, however, that Sublessee hereby covenants and agrees that it will adhere to and be bound by all use requirements and restrictions set forth in the Master Lease.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, a sublessee must comply with all laws, rules, regulations, resolutions, and ordinances concerning the subleased premises and their use of it. This includes, but isn't limited to, compliance with the Americans with Disabilities Act (ADA) and all applicable environmental and hazardous substances laws and regulations.
This compliance extends to altering, maintaining, or restoring the subleased premises at the sublessee's cost to conform with all such laws, rules, regulations, resolutions, and ordinances relating to the condition, use, or occupancy of the premises during the term of the sublease. This responsibility arises from any action or omission by the sublessee.
Furthermore, the sublessee must ensure that their use of the subleased premises does not cause a cancellation of any insurance covering the premises. They are also responsible for paying any increase in insurance premiums if the increase is a direct result of their activities on the subleased premises. The Big O Tires sublessee must also adhere to the use requirements and restrictions set forth in the Master Lease.