How is the monthly Base Rent for a Big O Tires franchise payable?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
and conditions.
NOW, THEREFORE, in consideration of the foregoing premises and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties acknowledge and agree as follows:
-
- Sublicense to Use Subscription Services. Pursuant to the terms of the Master SaaS Agreement, Big O sublicenses to Franchisee User the non-exclusive, nonsublicensable, non-transferable right to use and access the Subscription Services, in accordance with the terms of this SaaS User Agreement. The Subscription Services shall be solely used in connection with the operation of Franchisee User's Big O Tires store(s) operated under its franchise agreement(s) with Big O (collectively, the "Franchise Agreement").
-
- Fees. For each Big O Tires store operated by Franchisee User, Franchisee User shall pay a one-time implementation fee of $250 to Big O upon execution of this Agreement, and a monthly fee of $340 to Big O on the first day of each month, all of which may be charged by Big O to Franchisee User by Automatic Clearing House charge (or required by such other payment method as Big O may specify from time to time). In the event that Franchisee User lapses in its payment obligations to Big O under this SaaS User Agreement, Franchisee User will be in default of this SaaS User Agreement. Franchisee User shall also be responsible for paying to Big O any and all taxes (including but not limited to sales and/or use taxes, value added taxes, and stamp taxes), fees, tariffs, duties, or other similar levies imposed or required by any government, governmental unit or similar authority with respect to the fees made or payments received in connection with the Subscription Services. For any fees that are past due under this SaaS User Agreement, Big O may, at its option, charge interest at the lower of the rate of 12 percent per annum or the maximum rate allowable at law. All fees paid are non-refundable. Franchisee User is not obligated to pay any
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
I am unable to provide information on how the monthly base rent is payable for a Big O Tires franchise, according to the 2025 Franchise Disclosure Document. The provided excerpts do not mention the payment method for base rent. The excerpts do discuss fees associated with a SaaS agreement, indicating a monthly fee of $340 payable to Big O Tires via Automatic Clearing House charge or another payment method Big O Tires may specify. The document also mentions the possibility of late fees and interest on overdue amounts.
However, the excerpts do not specify how the monthly base rent for the franchise location itself is to be paid. The document refers to rent in the context of potential defaults and the landlord's acceptance of payments from Big O Tires to cure such defaults, but it does not detail the standard payment process for franchisees.
Therefore, a prospective Big O Tires franchisee should ask the franchisor directly about the specific methods and terms for paying monthly base rent, as this information is not covered in the provided FDD excerpts. Understanding these payment procedures is crucial for managing the financial obligations of the franchise.