Does Big O Tires refund any fees, and under what conditions?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 1: Fees are imposed by and payable to us, except as otherwise noted. All fees are nonrefundable, unless otherwise determined at Big O's sole discretion.
b. Big O has a policy under which Big O will rebate to a qualified (as defined in the Manual) Business Format Franchisee a portion of its royalty payments if Big O fails to meet certain "fill rate" standards for certain "Big O Program Products" designated in the policy. "Big O Program Products" are all tires bearing the Big O brand or Big O exclusive products that do not carry the Big O label and all other products designated by Big O periodically in its discretion. This policy may be changed periodically by Big O in consultation with the Franchise Advisory Council (which is further described in Note 4 of this Item 6 below). "Fill Rate" is the rate that Big O fulfills an order with the product ordered or an approved substitution product as designated by Big O. The Fill Rate will be measured on a warehouse by warehouse basis using a popularity code system. The amount, calculation and other details concerning the rebates paid under the Fill Rate Policy will be set forth in the Manual. Failure to fulfill orders due to causes beyond our control (such as natural disasters, strikes, governmental actions, war(s), or other causes), do not count against the Fill Rate or qualify a franchisee for a royalty rebate.
c.
For certain incentive programs that are identified and described in Item 5, we will temporarily charge reduced royalties during the first term of the Franchise Agreement, depending on the program.
The reduced rates range from 0% to 3% of the monthly Adjusted Gross Sales during the first two to three years following the commencement date of the Store.
In any subsequent years following the period during which a reduced royalty rate is available for an incentive, the royalty rate will be the full royalty in accordance with the Royalty Matrix rate.
Source: Item 6 — OTHER FEES (FDD pages 21–35)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, most fees are nonrefundable. However, refunds are possible at Big O Tires' sole discretion.
Big O Tires may offer rebates on royalty payments to qualified Business Format Franchisees if Big O Tires fails to meet certain "fill rate" standards for designated "Big O Program Products." The "Fill Rate" measures Big O Tires' ability to fulfill orders with the ordered product or an approved substitution. The amount and calculation details for these rebates are outlined in the Manual, and failures due to circumstances beyond Big O Tires' control do not qualify for a rebate.
Also, for certain incentive programs, Big O Tires may temporarily charge reduced royalties during the initial term of the Franchise Agreement. These reduced rates can range from 0% to 3% of monthly Adjusted Gross Sales during the first two to three years after the store's commencement date. After this incentive period, the royalty rate will revert to the full rate as per the Royalty Matrix.
Prospective franchisees should carefully review the Franchise Agreement and Manual for specific details on fee refund policies, royalty rebates, and incentive programs. It's important to understand the conditions under which refunds or rebates may be available and to discuss any questions or concerns with Big O Tires.