How long does Big O Tires have to respond to a franchisee's offer to transfer their Big O Tires business?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Because Big O or someone known to Big O may be interested in purchasing Franchisee's Franchised Business, the Premises, or an interest in either, if Franchisee decides to make a Transfer, Franchisee agrees to offer in writing to make the Transfer to Big O, and describe the terms under which Franchisee offers to make such a Transfer and provide a copy of the actual offer or letter of intent that contains such terms to Big O. If Big O has not offered to purchase what the Franchisee has offered to Transfer to Big O within thirty (30) days after Big O receives the notice from Franchisee, Franchisee may then offer to make the Transfer to third parties on the same or not more favorable terms and conditions as were offered to Big O. If Franchisee does not consummate, in accordance with the terms offered to Big O, the Transfer within six (6) months after Franchisee gives notice of the Transfer to Big O, Franchisee shall not make the Transfer without again first offering to make the Transfer to Big O. In the event that the offer to purchase the Franchised Business hereunder, Premises hereunder, or an interest in either, also includes the purchase of one or more other businesses, properties, or assets, the right of first refusal in this paragraph shall apply with respect to the Franchised Business and/or Premises hereunder, but the value attributable to the Franchised Business and/or Premises hereunder for the purposes of this right of first refusal shall be agreed upon by the parties in good faith based on the respective fair market values of the various properties and assets involved and the total price or consideration being offered for all of the properties and assets. If the parties cannot agree on such fair market values, the dispute shall be submitted
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, Big O Tires has 30 days to respond to a franchisee's offer to transfer their business. Specifically, if a franchisee decides to transfer their franchised business, premises, or an interest in either, they must first offer it in writing to Big O Tires, including the terms of the transfer and a copy of any actual offer or letter of intent.
Big O Tires then has thirty (30) days after receiving this notice to either offer to purchase the business or decline. If Big O Tires does not respond within this 30-day period, the franchisee is then free to offer the transfer to third parties, provided it is on the same or less favorable terms than those offered to Big O Tires.
However, if the transfer is not completed within six months of the initial notice to Big O Tires, the franchisee must again offer the transfer to Big O Tires before proceeding with a third party. This right of first refusal ensures that Big O Tires has the ongoing opportunity to control who enters the system and maintain brand standards.