Does Big O Tires have a Local Group Policy related to advertising?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
(d) Franchisee agrees to be bound by the decisions of Big O (or its designee) and its Local Group, if one has been established in Franchisee's marketing area, pertaining to local Advertising, provided such decisions have been approved by Big O and do not violate any applicable laws.
(e) Franchisee understands and acknowledges that the Local Fund to which it contributes will generally be used for Advertising in local areas or regions where Big O Stores are located, but Big O undertakes no obligation with regard to any Local Funds administered by it or by any Local Group to insure that all or any portion of the Local Funds are used in the local area or region of the Store location identified in the Summary Pages or to insure that any particular franchisee benefits directly or pro rata from the expenditures by the Local Fund.
The Local Funds may be used to meet any and all costs incident to the Advertising it supports; provided that, as to Local Funds administered by Big O, no part thereof shall be used by Big O to defray its general operating expenses other than (i) those reasonably allocable to such Advertising, or (ii) other activities reasonably related to the administration or direction of the Local Funds and related programs.
No refund of contributions to the Local Fund shall be due Franchisee upon termination or nonrenewal of this Agreement.
Any part of the Local Fund contributions not spent by Big O or a Local Group during its fiscal year, shall remain in the Local Fund.
Any taxes imposed on the Local Fund shall
be paid from the Local Fund. Big O retains the discretion to take such action or refrain from taking action as it deems appropriate to enforce the obligation of Franchisee to contribute to a Local Fund as provided in this Agreement and to enforce or refrain from enforcing the obligation of other franchisee to contribute to Local Funds as provided in their franchise agreements with Big O, but Big O has no obligation to Franchisee to enforce payments or contributions (in whole or in part) by other franchisees.
- 15.04 Other Required Advertising. Franchisee will purchase and use other advertising or marketing materials as designated by Big O from time to time in the Manual.
- 15.05 Approval of Advertising. Franchisee or the Local Group shall submit (through the mail, return receipt requested or an e-mail address designated by Big O, from time to time) to Big O for its prior written approval, samples of all marketing materials and advertising to be used by Franchisee that have not been prepared or previously approved in all respects by Big O or its designated agents, such approval by Big O shall not be unreasonably withheld. Franchisee shall submit tear sheets, receipts, and other evidence of such Advertising in the manner prescribed by Big O. Franchisee will not be required to submit to Big O copies of any proposed Advertising which has been adopted for use by the Local Group and which was previously approved by Big O for use by the Local Group. Franchisee shall not set up, maintain or utilize an Internet website or home page to sell Products and Services nor cause or allow the Licensed Marks, or any of them, to be used or displayed, in whole or in part, as an Internet domain name or on or in connection with any Internet website or home page without Big O's express prior written consent (which Big O may grant or withhold in its sole discretion), and then only in such manner and in accordance with such procedures, standards and specifications as Big O establishes from time to time.
- 15.06 CRM Program. Franchisee must participate in a customer relationship management program ("CRM Program") under which Big O or its approved supplier will send a number of postcards and other communications such as e-mails and text messages each month to certain categories of customers, which number may vary based on factors including Store performance and sales or other criteria Big O or the supplier designate, and which may change from time to time. Although Big O will not directly charge Franchisee a fee for this service, this service will be paid for in part by the National Marketing Program and in part from contributions from Big O. The CRM Program may be modified or discontinued at any time in Big O's sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, franchisees must adhere to the advertising decisions made by Big O Tires and their Local Group, assuming a Local Group has been established in their marketing area. These decisions are binding, provided they are approved by Big O Tires and do not violate any laws.
Big O Tires also uses a Local Fund for advertising in areas where Big O Tires stores are located. However, Big O Tires does not guarantee that the funds will be used in the franchisee's specific local area or that the franchisee will directly benefit from these expenditures. The Local Funds can cover any costs related to the advertising they support. Any unspent funds remain in the Local Fund, and taxes imposed on the Local Fund are paid from the Local Fund.
Franchisees are also required to purchase and use advertising or marketing materials as designated by Big O Tires in its manual. Franchisees or Local Groups must submit all marketing materials and advertising to Big O Tires for prior written approval, unless the materials have been previously approved. Additionally, franchisees must participate in a customer relationship management program (CRM) where communications are sent to customers, with the program being paid for by the National Marketing Program and contributions from Big O Tires. Big O Tires may modify or discontinue the CRM program at any time.