What is the required procedure for a Big O Tires franchisee to move the collateral to a different location?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee before the Store may be opened or relocated. Big O may condition its approval of a Store lease upon Franchisee's execution of a conditional lease assignment in a form, which is the same as, or similar to the one found on Schedule 4. If Franchisee has been a Big O franchisee for ten years or less and if Franchisee or any of Franchisee's owners (if Franchisee is a business entity or trust) owns an interest in the real estate on which the Store is located, owns an interest in an entity that owns the real estate (including an entity such as a trust of which the Franchisee is a beneficiary), or if such real estate is owned by an immediate family member of such person, Big O may require Franchisee to enter into an Option and Store Lease with Big O or its affiliate in the then-current form in use by Big O or its affiliate in the then-current form in use by Big O, which would give Big O or its affiliate the right to lease the Premises in the event this Agreement is terminated or expires, if Big O or its affiliate chooses to exercise such option. If Franchisee has been a Big O franchisee (or owned more than 50% of the Franchisee Entity) for more than ten years and is leasing the site upon which the Store is located from any of Franchisee's owners (if Franchisee is a business entity or trust), or an entity that is owned, in whole or in part, by Franchisee or any of Franchisee's owners, or an immediate family member of Franchisee, Franchisee will have the option to sign a modified form of lease assignment which is attached as Schedule 5 to the Franchise Agreement (instead of the Option and Store Lease). A Memorandum of Lease Option or a Memorandum of Lease Rider and Modification may be recorded or filed by Big O or its affiliate in the event an Option and Store Lease is required.
- (b) A prototype floor plan, elevation and equipment layout for the Store.
Big O may charge Franchisee its costs (as reasonably determined by Big O) of these.
The plans must be modified by Franchisee's architect or contractor to adapt them to conditions at the Premises and to satisfy all local code requirements.
Revisions or modifications to the plans must be approved by Big O.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
The 2025 Big O Tires Franchise Disclosure Document outlines the process for relocating a store. According to the FDD, a franchisee must obtain Big O Tires' written consent before relocating a store. Big O Tires may also require the franchisee to execute a conditional lease assignment.
Big O Tires may condition approval of a store lease upon the franchisee's execution of a conditional lease assignment. If the franchisee has been a Big O Tires franchisee for ten years or less, and they or their owners have an interest in the real estate where the store is located, Big O Tires may require the franchisee to enter into an Option and Store Lease. This gives Big O Tires the right to lease the premises if the Franchise Agreement is terminated or expires and Big O Tires chooses to exercise the option.
If the franchisee has been a Big O Tires franchisee for more than ten years and is leasing the site from their owners or an entity owned by the franchisee or their family, the franchisee has the option to sign a modified form of lease assignment. Big O Tires or its affiliate may record a Memorandum of Lease Option or a Memorandum of Lease Rider and Modification if an Option and Store Lease is required. The franchisee is also responsible for modifying the prototype floor plans, elevation, and equipment layout to fit the new premises and meet local code requirements, with any revisions needing Big O Tires' approval.