When is the monthly royalty fee due to Big O Tires?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
. The royalty fee for each month must be received by Big O no later than the Due Date in the following month.
- 8.03 National Marketing Fee. Franchisee shall pay to Big O a monthly contribution to the National Marketing Program pursuant to Section 15.02(a) below.
- 8.04 Late Fees. If any fee or any other amount due under this Agreement, including payments for Products and Services, is not received within ten (10) days after such payment is due, Franchisee shall pay Big O interest equal to the lesser of the dai
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the monthly royalty fee must be received by Big O Tires no later than the Due Date in the following month. The Due Date is defined as the twenty-seventh (27th) of each month for the royalty fees. Therefore, the royalty fee for each month is due by the 27th of the following month.
For a prospective franchisee, this means that if your Big O Tires store has a strong sales month in July, the royalty payment based on those sales is not due until August 27th. This provides a window to manage cash flow and ensure timely payment. Failing to remit payment on time can result in late fees, as outlined elsewhere in the franchise agreement.
It is important to note that the 'Due Date' also applies to advertising and marketing contributions, but those are due on the 17th of each month. Franchisees should be aware of both deadlines to avoid any penalties. The franchisor may modify these dates as set forth in Section 16.03, so it's important to stay updated on any changes.