For what reasons may Big O Tires cancel the plan in Alaska?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Alaska: CANCELLATION is deleted and replaced with the following: You may return this Plan to the selling dealer within thirty (30) days of the Plan Purchase Date, if no claim has been made under the Plan, the Plan is void and you shall receive a refund of the full price paid for the Plan. After the first thirty (30) days from the Plan Purchase Date, we or the selling dealer will refund you a pro-rated amount of the Plan Purchase Price, based on the months remaining. The Obligor may cancel this Plan for non-payment of Plan Purchase Price by the selling dealer to Obligor, or for material misrepresentation or fraud at time of sale. If Obligor cancels this Plan, Obligor or the selling dealer will refund you 100% of the Plan Purchase Price.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, specific cancellation terms apply to the Road Hazard Plan in Alaska. A franchisee in Alaska should understand the conditions under which Big O Tires, as the Obligor, may cancel the plan.
Big O Tires may cancel the Road Hazard Plan in Alaska if the selling dealer does not pay Big O Tires the plan purchase price. Additionally, Big O Tires can cancel the plan if there is material misrepresentation or fraud at the time of sale. If Big O Tires cancels the plan under these circumstances, the franchisee will receive a refund of 100% of the plan purchase price.
It is important for a prospective Big O Tires franchisee in Alaska to be aware of these cancellation terms, as they outline the circumstances under which the Road Hazard Plan can be terminated and the franchisee's rights in such a situation. Understanding these terms can help the franchisee manage their business and customer relationships effectively.