How were the Part B Reporting Big O Tires Stores separated into quartiles?

According to Big O Tires's 2025 Franchise Disclosure Document, the Part B Reporting Stores were divided into quartiles based on their average Total Incomes. The stores were ranked by their Total Incomes for the 2024 year. The Top Quartile consisted of stores with the highest average Total Incomes, while the 4th Quartile included those with the lowest. This method of categorization allows prospective franchisees to see a range of financial performance among existing Big O Tires locations.

Specifically, the FDD indicates that Part B of the financial performance representation includes data from 280 franchised U.S. Big O Tires stores that met certain criteria, such as operating for at least 12 consecutive months in 2024 and providing reliable financial data. These 280 stores represent approximately 61.3% of all U.S. franchised outlets. The average Total Income for all Part B Reporting Stores was $2,941,799. The document also provides percentage breakdowns of expenses relative to this income, such as Cost of Goods Sold (42.1%), Gross Profit (57.9%), Total Labor (26.7%), Total Operating Expense (49.1%), and Net Income From Operations (8.8%).

Understanding how these quartiles are determined is crucial for potential franchisees as it provides insight into the income distribution among Big O Tires franchises. By examining the performance of stores in different quartiles, prospective franchisees can gain a better understanding of the potential financial outcomes and the factors that may contribute to success. It's important to note that the FDD also includes the median of Total Income, Gross Profit, and Net Income for each quartile, offering another valuable metric for analysis. Consulting with financial advisors and existing franchisees is recommended to fully assess the potential earnings and expenses associated with operating a Big O Tires franchise.