What is the process for resolving disputes between Big O Tires and a franchisee regarding compliance with termination provisions, specifically concerning Big O Tires' agreement not to market to local customers?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Upon the expiration or earlier termination of each Franchise Agreement subject to this Agreement, and during the Restrictive Period, Big O agrees not to market to any Local Customer of the Authorized Location subject to the terminated Franchise Agreement, provided that (i) at the time of the expiration or termination of the Franchise Agreement, and at all times during the Restrictive Period, Franchisee is in full compliance with all of the termination provisions of the Franchise Agreement, including all on-going post termination provisions (ii) Franchisee provides Big O with written notice of such affirmative compliance within thirty (30) days of the expiration or termination of the Franchise Agreement, and at such other times as Big O may reasonably request; and (iii) Big O does not dispute such affirmative compliance in writing within fifteen (15) days of receipt of said written notice.
However, should Big O dispute the affirmative compliance within the fifteen (15) day time frame provided in this subsection, then the parties acknowledge and agree that the dispute shall be submitted to the Franchise Advisory Council to resolve.
The Franchise Advisory Council shall have sixty (60) days in which to render its decision, which decision shall be binding on Big O and Franchisee.
Until the Franchise Advisory Council has rendered its decision, Big O agrees that it will not market to any Local Customer of the Authorized Location.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, a specific process is outlined for resolving disputes related to compliance with termination provisions, particularly concerning Big O Tires' agreement not to market to local customers after a franchise agreement expires or is terminated.
The process begins when a Big O Tires franchisee asserts they have complied with all termination provisions of the Franchise Agreement. The franchisee must provide written notice to Big O Tires within thirty days of the expiration or termination of the agreement, and at any other times Big O may reasonably request, affirming their compliance. Big O Tires then has fifteen days from receipt of this notice to dispute the franchisee's claim of compliance in writing.
If Big O Tires disputes the franchisee's compliance within the fifteen-day period, the dispute is submitted to the Franchise Advisory Council for resolution. The Franchise Advisory Council has sixty days to render a decision, which is binding on both Big O Tires and the franchisee. Until the Franchise Advisory Council makes its decision, Big O Tires agrees not to market to any local customer of the authorized location. This entire process ensures that disputes are handled through a defined mechanism involving a council decision, with a temporary restriction on marketing activities by Big O Tires to the local customers of the terminated franchise during the resolution period.