What obligations of Big O Tires are guaranteed by TBC Holdings?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, TBC Holdings, LLC, a Delaware limited liability company (the "Guarantor"), located at 4260 Design Center Drive, Palm Beach Gardens, Florida 33410, absolutely and unconditionally guarantees to assume the duties and obligations of Big O Tires, LLC, located at 4260 Design Center Drive, Palm Beach Gardens, Florida 33410 (the "Franchisor"), under its franchise registration in each state where the franchise is registered, and under its Franchise Agreement identified in its 2025 Franchise Disclosure Document, as it may be amended, and as that Franchise Agreement may be entered into with the franchisees and amended, modified or extended from time to time. This guarantee continues until all such obligations of the Franchisor under its franchise registrations and the Franchise Agreement are satisfied or until the liability of Franchisor to its franchisees under the Franchise Agreement has been completely discharged, whichever first occurs. The Guarantor is not discharged from liability if a claim by a franchisee against the Franchisor remains outstanding. Notice of acceptance is waived. The Guarantor does not waive receipt of notice of default on the part of the Franchisor. This guarantee is binding on the Guarantor and its successors and assigns.
Source: Item 21 — FINANCIAL STATEMENTS (FDD pages 101–102)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, TBC Holdings, LLC, as the Guarantor, absolutely and unconditionally guarantees to assume the duties and obligations of Big O Tires, LLC, as the Franchisor. This guarantee specifically covers Big O Tires' obligations under its franchise registration in each state where the franchise is registered and under its Franchise Agreement as outlined in the 2025 Franchise Disclosure Document. The Franchise Agreement may be amended, modified, or extended over time, and the guarantee applies to these changes as well.
This guarantee remains in effect until all obligations of Big O Tires under its franchise registrations and the Franchise Agreement are fully satisfied or until Big O Tires' liability to its franchisees under the Franchise Agreement has been completely discharged. Importantly, TBC Holdings is not released from liability if a franchisee's claim against Big O Tires remains outstanding, providing an additional layer of security for franchisees.
Prospective Big O Tires franchisees should understand that this guarantee by TBC Holdings offers significant protection. It ensures that if Big O Tires fails to meet its obligations, TBC Holdings will step in to fulfill them. This reduces the risk for franchisees, as they have recourse to TBC Holdings' resources and commitment. The guarantee is binding on TBC Holdings and its successors and assigns, further solidifying its long-term reliability. Franchisees should carefully review the Franchise Agreement and related documents to fully understand the scope and limitations of this guarantee.