What provisions of the Big O Tires License Agreement survive the termination of the agreement?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Survival of Representations and Warranties. Upon termination of the Franchise Agreement, this Agreement shall be simultaneously terminated and be of no further force or effect, except that the provisions of Section 4 shall survive during the Restrictive Period.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, upon termination of the Franchise Agreement, the License Agreement terminates simultaneously and is of no further force or effect, except that the provisions of Section 4 survive during the Restrictive Period.
Section 4 of the License Agreement pertains to the Consumer Database. Specifically, Big O Tires and its franchisees may access the portion of the Consumer Database related to a local customer of an authorized location with an expired or terminated Franchise Agreement before the Restrictive Period ends. This access is solely for providing warranty work and follow-up responses if the customer visits another Big O Tires franchisee for warranty service. However, providing warranty services does not allow Big O Tires to market to that local customer in violation of other subsections.
Customer information, excluding that of local customers, remains in the Consumer Database without use restrictions after the Franchise Agreement terminates. Big O Tires must keep Shared Information confidential and not disclose customer-identifying information for marketing purposes or to determine the location of non-Big O stores without the franchisee's consent. Big O Tires can aggregate data from the franchisee's locations with other Big O Tires retail store data to analyze trends with affiliated companies, manufacturers, and marketers.