Can the Big O Tires payment agreement be terminated, and if so, what is the required method of notification?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
I (we) understand that this agreement can be terminated at any time as long as I (we) have given either the Company or the Bank written notification. This written notification to either the Company or Bank shall be effective for only those payments to be issued by the Company or received by the Bank after they either or both receive notification and have sufficient and reasonable opportunity to act upon it.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, the Authorization Agreement for Preauthorized Payment Service can be terminated. The agreement can be terminated at any time, provided that either Big O Tires or the bank involved receives written notification.
For a prospective franchisee, this means that if they enroll in the preauthorized payment service, they retain the right to discontinue this service. The written notification ensures there is a documented request to stop the payments, protecting both the franchisee and Big O Tires.
The notification is only effective for payments issued or received after the company or bank has had sufficient time to act upon the notification. This clause protects Big O Tires and the bank from liability for any payments processed before they could reasonably implement the termination request. It is important for the franchisee to provide this notice well in advance of any payment they wish to stop to ensure the termination is processed in time.