Does Big O Tires have an obligation to select or acquire a site on behalf of the franchisee?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.01 Pre-Opening Assistance. Prior to Franchisee's Commencement Date, Big O shall provide Franchisee with the following assistance to the extent and as determined by Big O from time to time in its sole discretion:
- (a) Assistance to Franchisee related to approval of a site for the Store, although Franchisee acknowledges that Big O shall have no obligation to select or acquire a site on behalf of Franchisee. Big O's assistance will consist of providing criteria for a satisfactory site, an on-site inspection and determination of whether a proposed site fulfills the requisite criteria, prior to formal approval of a site selected by Franchisee. At Big O's option, Big O may, without fee or expense to Franchisee, review the proposed Store lease. The final decision about whether to acquire a given approved site or whether to execute any particular lease shall be the sole decision of Franchisee. Big O disclaims all liability for the consequences of approving a given site. Big O's participation in site selection in no way is meant to constitute a warranty or guaranty that the Franchised Business will be profitable or otherwise successful. Big O's written approval of the Premises and Store must be obtained by
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, Big O Tires has no obligation to select or acquire a site on behalf of the franchisee. However, Big O Tires will provide assistance related to site approval. This assistance includes providing criteria for a satisfactory site and conducting an on-site inspection to determine if the proposed site meets the criteria.
Big O Tires may also review the proposed store lease without any fee or expense to the franchisee, but the final decision to acquire the approved site or execute the lease remains solely with the franchisee. Big O Tires disclaims all liability for the consequences of approving a site and clarifies that their participation in site selection does not guarantee the franchised business's profitability or success.
The franchisee is responsible for obtaining Big O Tires's written approval of the premises and store. The franchisee must select and obtain Big O's approval of the premises within twelve months of the effective date. If the franchisee fails to do so, Big O Tires may terminate the agreement and refund $10,000 of the initial franchise fee upon receipt of a general release from the franchisee.