What are the payment terms for a real estate lease with Big O Tires?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
| Financing Program | Items Financed | Eligibility | Amount Financed | Interest Rate | Term | Security Required | Liability Upon Franchisees: | Payment Terms | |
|---|---|---|---|---|---|---|---|---|---|
| Default | Waiver of Legal Rights | ||||||||
| Real Estate Sub-lease (See Note 10) | Big O may lease space for your store and sublease it to you. | At Big O’s discretion. | Varies | Interest due only on past due rent. See Exhibit F. | Varies | Security deposit specified in sublease; personal guarantee by owners and others. | See Note 10. | Indemnification of Big O from claims arising from sublease. | Monthly rent payments on the first day of each month. |
| Real Estate Lease (See Note 11) | Big O may own the property where your franchise is located and lease it to you. |
Source: Item 10 — FINANCING (FDD pages 48–55)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, if Big O Tires owns the property where your franchise is located and leases it to you, monthly rent payments are due on the first day of each month. This is subject to change at Big O Tires' discretion. The rent will generally be based on market rates as determined by Big O Tires and calculated to include amortization of the cost of the property, including improvements, plus a return on the investment. Interest is due only on past due rent, as detailed in Exhibit P.
In the event of default, the franchisee may lose their security deposit and the lease may be terminated. The franchisee is liable to Big O Tires for all damages suffered and/or costs incurred as a result of the default, including late fees, interest, and cost of collection, including attorneys' fees. Big O Tires also has a right of re-entry.
These lease terms are subject to Big O Tires' discretion and can change periodically. Prospective franchisees should carefully review Exhibit P and discuss the specific terms and conditions of the real estate lease with Big O Tires to fully understand their obligations and potential liabilities.