For non-Midas programs at Big O Tires, who is primarily responsible for warranty claims?

According to the 2025 Big O Tires Franchise Disclosure Document, for non-Midas programs, the vendors supplying products to Big O Tires are primarily responsible for warranty claims. However, Big O Tires is responsible for warranty costs relating to merchandise sold or services provided not covered by vendors. These costs are estimated and recorded as warranty obligations at the time of sale, and the company periodically assesses and adjusts the recorded warranty liability as necessary.

This means that if a Big O Tires franchisee sells a product with a warranty, the franchisee needs to understand whether Big O Tires's vendors or Big O Tires itself is responsible for handling claims under that warranty. For products where the vendor is responsible, the franchisee will likely need to facilitate the customer's claim with the vendor. For products where Big O Tires is responsible, the franchisee will need to follow Big O Tires's procedures for handling warranty claims.

It is important for a prospective Big O Tires franchisee to understand the specific warranty obligations associated with the products and services they offer. This includes knowing which entity is primarily responsible for handling claims and what procedures must be followed to ensure customer satisfaction and proper handling of warranty costs. Franchisees should clarify with Big O Tires the details of these warranty programs and the support provided for managing warranty claims.