What is the purpose of the Franchise Advisory Council for Big O Tires franchisees?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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25. FRANCHISE ADVISORY COUNCIL
- 25.01 Franchise Advisory Council. Big O has established a Franchise Advisory Council ("FAC"), consisting of franchisee representatives, which is designed to provide input to Big O's strategic business plan as may be presented from time to time by Big O and to present viewpoints to Big O's management on issues involving the franchise relationship. FAC members shall be chosen by Franchisees in accordance with policies established by Big O from time to time. Generally, FAC members will be elected by franchisees who are members of BOTDA. Franchisee elected BOTDA board members will elect one BOTDA board member per each region established by Big O from time to time, along with the BOTDA board chairman, to serve on the BEC. The appointed BEC franchisee members will constitute the FAC membership.
- 25.02 Special Interest Issues. Big O has granted the FAC the authority to participate with Big O's management in making policy decisions relating to issues in which the FAC is deemed to have a special interest. The issues of "Special Interest" include, but may not be limited to:
- (a) advertising policies and the creation of a National Marketing Program;
- (b) standards of operation; and the implementation of new programs which may require the addition of new equipment and fixtures for the store;
- (c) selection of Products and Services offered at Big O Stores;
- (d) changes in the Licensed Marks anticipated to require the majority of franchisees to expend more than five thousand dollars ($5,000.00) per Store; and
- (e) input in establishment of warranties and guaranties.
- 25.03 Disapproval of Management Proposal. With respect to those issues in which the FAC has a Special Interest, the FAC may, after consulting with the members of BOTDA, vote to disapprove a proposal of Big O's management. If, pursuant to established procedures which have been approved by Big O, the FAC shall disapprove a proposal of Big O's management, the proposal may only become effective if, following a presentation to a committee of Big O's management established for the purposes of addressing the issues with the FAC representative, the Big O committee votes to adopt management's proposal.
25.04 Compliance with Modification. Franchisee agrees to comply with any and all modifications to Big O's standards of operation, procedures, or other requirements adopted pursuant to the procedures described in this Section 25.
26. RIGHT OF OFFSET
26.01 Right of Offset. Big O shall have the right at any time before or after termination of this Agreement, without notice to Franchisee, to offset any amounts or liabilities that may be owed by the Franchisee to Big O against any amounts or liabilities that may be owed by Big O to Franchisee under this Agreement or any other agreement, loan, transaction or relationship between the parties.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the Franchise Advisory Council (FAC) is designed to provide input to Big O's strategic business plan and present franchisee viewpoints on issues involving the franchise relationship. The FAC consists of franchisee representatives chosen by franchisees, often members of the Big O Tire Dealers of America (BOTDA). BOTDA board members then elect one BOTDA board member per region, along with the BOTDA board chairman, to serve on the Business Environment Committee (BEC). The appointed BEC franchisee members then constitute the FAC membership.
The FAC has the authority to participate with Big O Tires' management in making policy decisions on issues of "Special Interest." These issues include advertising policies, the creation of a National Marketing Program, standards of operation, the implementation of new programs requiring new equipment and fixtures (where franchisees may have to spend more than $5,000 per store), the selection of Products and Services offered at Big O stores, and input in the establishment of warranties and guarantees.
If the FAC disapproves a proposal from Big O Tires' management on a special interest issue after consulting with BOTDA members, the proposal can only become effective if a committee of Big O's management votes to adopt the proposal after addressing the issues with the FAC representative. This process ensures that franchisee concerns are considered in significant decisions, especially those involving substantial financial investments or operational changes. Big O Tires also shares reports of stores' individual performance with the Big O Franchise Advisory Council and at franchisee meetings, and for such other purposes as agreed to by Big O and the Big O Franchise Advisory Council.
In summary, the Franchise Advisory Council serves as a formal mechanism for Big O Tires franchisees to influence the strategic direction and operational policies of the franchise system, particularly on matters that directly impact their businesses and investments. This setup gives franchisees a voice in key decisions and helps ensure that their perspectives are considered by the franchisor.