What is the required action for a Big O Tires employee to qualify for the associate franchise discount?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Associate Franchise Discount. Full-time employees (also referred to as "associates") of Big O Tires, LLC or affiliated companies (such as TBC Retail Holdings) who have been employees on an uninterrupted basis for at least five years will be eligible for a reduction of the initial franchise fee to $10,000 for a newly developed Big O Store. The employee must resign his or her position with Big O Tires, LLC or the affiliated company and assume full-time active management of the Big O franchise.
The associate will not be entitled to this associate franchise discount if the associate purchases an existing Big O franchise. Also, to be entitled to this associate franchise discount, the associate must be acquiring a majority interest in the new franchise. If the associate does not continue to meet this ownership requirement for at least two years after acquiring the new franchise, the associate must pay us the difference between the initial franchise fee which would have been due had the associate not qualified for the reduction (which is now $17,500) and the reduced initial franchise fee the associate did pay.
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Source: Item 5 — INITIAL FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, a full-time employee, also referred to as an "associate", of Big O Tires, LLC or affiliated companies, such as TBC Retail Holdings, can qualify for the associate franchise discount. To qualify, the employee must have been employed on an uninterrupted basis for at least five years.
To receive the discount, the employee must resign from their position with Big O Tires, LLC or the affiliated company. They must also assume full-time active management of the new Big O Tires franchise. The associate franchise discount reduces the initial franchise fee to $10,000 for a newly developed Big O Tires store.
The associate will not be entitled to the associate franchise discount if they purchase an existing Big O Tires franchise. To be entitled to this discount, the associate must acquire a majority interest in the new franchise and maintain this ownership for at least two years. If the ownership requirement is not met for at least two years, the associate must pay Big O Tires the difference between the reduced initial franchise fee they paid and the standard initial franchise fee of $17,500.