What payment method does Big O Tires use to charge the franchisee for the Subscription Services?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
se Agreement").
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- Fees. For each Big O Tires store operated by Franchisee User, Franchisee User shall pay a one-time implementation fee of $250 to Big O upon execution of this Agreement, and a monthly fee of $340 to Big O on the first day of each month, all of which may be charged by Big O to Franchisee User by Automatic Clearing House charge (or required by such other payment method as Big O may specify from time to time). In the event that Franchisee User lapses in its payment obligations to Big O under this SaaS User Agreement, Franchisee User will be in default of this SaaS User Agreement. Franchisee User shall also be responsible for paying to Big O any and all taxes (including but not limited to sales and/or use taxes, value added taxes, and stamp taxes), fees, tariffs, duties, or other similar levies imposed or required by any government, governmental unit or similar authority with respect to the fees made or payments received in connection with the Subscription Services. For any fees that are past due under this SaaS User Agreement, Big O may, at its option, charge interest at the lower of the rate of 12 percent per annum or the maximum rate allowable at law. All fees paid are non-refundable. Franchisee User is not obligated to pay any
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, franchisees are required to pay certain fees related to Subscription Services. Specifically, for each Big O Tires store, a franchisee must pay a one-time implementation fee of $250 upon execution of the SaaS User Agreement. Additionally, there's a monthly fee of $340 due on the first day of each month.
Big O Tires typically charges these fees to the franchisee through an Automatic Clearing House (ACH) charge. However, Big O retains the right to specify other payment methods as needed. If a franchisee fails to meet their payment obligations under the SaaS User Agreement, they will be considered in default of the agreement.
Franchisees are also responsible for covering all applicable taxes, such as sales, use, value-added, and stamp taxes, related to the fees and payments for the Subscription Services. If any fees remain unpaid, Big O Tires has the option to charge interest, capped at the lower of 12% per annum or the maximum rate permitted by law. All fees paid by the franchisee are non-refundable.