factual

What pre-opening assistance does Big O Tires provide to franchisees before their Commencement Date?

Big_O_Tires Franchise · 2025 FDD

Answer from 2025 FDD Document

E

  • 7.01 Pre-Opening Assistance. Prior to Franchisee's Commencement Date, Big O shall provide Franchisee with the following assistance to the extent and as determined by Big O from time to time in its sole discretion:
  • (a) Assistance to Franchisee related to approval of a site for the Store, although Franchisee acknowledges that Big O shall have no obligation to select or acquire a site on behalf of Franchisee. Big O's assistance will consist of providing criteria for a satisfactory site, an on-site inspection and determination of whether a proposed site fulfills the requisite criteria, prior to formal approval of a site selected by Franchisee. At Big O's option, Big O may, without fee or expense to Franchisee, review the proposed Store lease. The final decision about whether to acquire a given approved site or whether to execute any particular lease shall be the sole decision of Franchisee. Big O disclaims all liability for the consequences of approving a given site. Big O's participation in site selection in no way is meant to constitute a warranty or guaranty that the Franchised Business will be profitable or otherwise successful. Big O's written approval of the Premises and Store must be obtained by

Franchisee before the Store may be opened or relocated. Big O may condition its approval of a Store lease upon Franchisee's execution of a conditional lease assignment in a form, which is the same as, or similar to the one found on Schedule 4.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

What This Means (2025 FDD)

According to Big O Tires' 2025 Franchise Disclosure Document, before the franchisee's Commencement Date, Big O Tires will provide assistance to the franchisee to the extent and as determined by Big O Tires in its sole discretion. This assistance includes site approval, where Big O Tires will provide criteria for a satisfactory site and conduct an on-site inspection to determine if the proposed site meets the criteria. Big O Tires may also review the proposed store lease without any fee or expense to the franchisee; however, the final decision to acquire the site or execute the lease remains with the franchisee. Big O Tires disclaims all liability for the consequences of approving a site and clarifies that site selection participation does not guarantee profitability or success. The franchisee must obtain Big O Tires' written approval of the premises and store.

Big O Tires also provides online access to the Big O Manual or other proprietary information. Additionally, Big O Tires offers assistance in selecting the franchisee's initial inventory and in the layout, merchandising, and display of the store.

Prospective franchisees should note that while Big O Tires offers assistance, the ultimate responsibility for site selection, financing, permits, construction, and stocking the store lies with the franchisee. The level of assistance provided is subject to Big O Tires' discretion, which introduces an element of uncertainty for new franchisees. Franchisees should seek clarity on the extent of pre-opening support they can expect to receive to adequately prepare for their store launch.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.