What is the length of each renewal option term for the Big O Tires lease?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3. Renewal Option. Provided that at the time of the giving of Tenant's renewal notice and at the end of the term hereof Tenant is not in default of any of the terms, conditions or covenants contained herein and provided, further, that the Franchise Agreement (as defined in Section 4) has been renewed by Tenant and Big O Tires, LLC, a Nevada limited liability company ("Big O"), Tenant (including any approved assignee or subtenant) is hereby granted the option to extend this Lease for two (2) successive additional terms of five (5) years each (the "Extended Terms") upon Tenant's notifying Landlord in writing of its election to extend at least one hundred eighty (180) days prior to expiration of this Lease. During such Extended Terms, if exercised, this Lease shall be on the same terms and conditions contained herein except: (a) the Extended Terms shall contain no further extension options unless expressly granted by Landlord in writing; and (b) Tenant agrees to pay to Landlord during said
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, the standard lease agreement offers two renewal options. Each of these renewal periods extends the lease for five years.
For a Big O Tires franchisee, this means that after the initial ten-year lease term, they have the potential to extend their lease for an additional ten years, divided into two five-year segments. This provides a degree of long-term security and stability for the business location, assuming the franchisee meets the conditions for renewal.
However, to exercise these renewal options, the franchisee must provide written notice to the landlord at least 180 days before the lease's expiration. Additionally, the franchisee must not be in default of any lease terms at the time of renewal and must have also renewed their Franchise Agreement with Big O Tires. The renewed lease terms will generally be the same, except there are no further extension options unless the landlord provides them in writing, and the base rent is subject to adjustment as outlined in the lease agreement.