factual

Is Big O Tires required to provide training programs?

Big_O_Tires Franchise · 2025 FDD

Answer from 2025 FDD Document

Before the opening of your Big O Store and provided you have paid the franchise fee, we make available to you the online Learning Management System. We also will provide an initial Online Training program and the Facilitated Training program for one person. The curriculum of the Facilitated Training program (which may be updated and revised at any time within the sole discretion of Big O), may be conducted at our company training facilities, in an online virtual classroom, or at any geographical location, in our discretion. Additionally, field training and operations certification will be conducted at a Big O Store designated by us. The number of weeks of this initial training will be the number specified by us in our discretion; currently, we specify approximately one or two days of Online Training, one and a half weeks of Facilitated training, three and a half weeks of required field training and two weeks of optional field training. There is no fee for the optional field training. The two week portion of the initial training program is conducted at a Big O Store. This training can be conducted by an existing franchisee of Big O at that franchisee's approved location, or at your Big O Store location if approved by the Training Department. This portion of the training program consists of "hands-on" training in front office skills (such as marketing and customer relations) and back room skills (such as recommended accounting procedures based upon our business model, receiving tires, stacking tires and clean-up). The configuration, content and timing of classroom training and "hands on" training may be determined based upon time and attendance considerations of each training session. The Online Training is offered on demand at any time. We hold the Facilitated Training, and mandatory and optional field training, as often as needed, typically once a month.

Each individual receiving the field training and certification must sign a Certification Program Agreement in the form of Exhibit U with Big O and the franchisee providing the training. Unless we waive the training requirements or a part of the training requirements, you, or if you are not an individual, your Operator (the person designated by you to assume the responsibility for the operation of your Big O Store), must attend and successfully complete the training program at any time following the execution of your Franchise Agreement and prior to your Big O Store opening for business. If you or your Operator fails to successfully complete the training program, at our direction you or your Operator must attend an additional training program at your cost or we may terminate the Franchise Agreement.

The tuition or training fee covering the initial training program for one person (which may be you if you are an individual or may be your Operator), is built into the franchise fee. You may send people in addition to your Operator to the initial training program. For all these additional trainees, you must pay a training fee of $75 per week per person for the classroom portion of the training and $500 per week per person for the one and a half weeks of mandatory field training and certification. You must bear all travel, lodging, food and all other living expenses that are incurred by each trainee while attending training programs.

We have not established a policy that requires any certain minimum amount of experience to be an instructor at our National Training Center or for our field training. However, the instructors of our initial training at our National Training Center generally have at least five years of experience in the subject matter they will be teaching. The instructors for our field training and certifications are Big O employees who generally have at least five years experience in the subject matter they will be teaching and existing franchisees who generally have at least five years experience as Big O franchisees. We choose the trainer/franchisees in our discretion. The instructors of our multi-unit franchise management training are Big O employees who generally have at least five years experience in the subject matter they will be teaching and existing multi-unit franchise operators who generally have at least five years of experience as Big O franchisees.

The instruction materials include portions of our Manual known as the Franchise Policies & Standards Manual, and our new franchisee orientation program, handouts, media presentations, and online learning materials. The instructors for the Facilitated Training program in the initial training

program are members of the Big O Training Department and other employees of Big O who are knowledgeable in the particular subject matter, but training may also periodically include non-employee speakers such as franchisees or supplier representatives. The instructors for the field training in the initial training program are franchisees designated by us.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 77–78)

What This Means (2025 FDD)

According to Big O Tires' 2025 Franchise Disclosure Document, Big O Tires does provide an initial training program. Before opening a Big O Tires store, franchisees gain access to an online Learning Management System, an initial Online Training program, and a Facilitated Training program for one person. The curriculum for the Facilitated Training program can be updated at Big O's discretion and may be conducted at company training facilities, in an online virtual classroom, or at any geographical location. Field training and operations certification will also be conducted at a Big O Store designated by Big O Tires.

The initial training includes approximately one or two days of Online Training, one and a half weeks of Facilitated training, three and a half weeks of required field training, and two weeks of optional field training. The two-week portion of the initial training program is conducted at a Big O Store and consists of hands-on training in front office skills, such as marketing and customer relations, and back room skills, such as recommended accounting procedures, receiving tires, stacking tires, and clean-up. The configuration, content, and timing of classroom and hands-on training may vary based on time and attendance considerations. The Online Training is available on demand, and the Facilitated Training, along with mandatory and optional field training, is typically held once a month.

Big O Tires also provides onsite training at its discretion upon a franchisee's request or at Big O's initiative. These onsite training programs can be mandatory or voluntary, and Big O may require franchisees to pay a site visit tuition or fee for their trainees. Big O may also require and provide additional training for a franchisee's Operator or Manager in certain circumstances, such as for stores with high real estate costs or past sales. Franchisees are responsible for their own transportation, lodging, and living expenses while attending this additional training, and Big O may charge a reasonable fee for it. This additional training typically involves spending an additional 60 working days training in a similar store. Big O's current standards for these "high levels" include real estate project costs of $4,500,000 or more for purchased real estate or lease payments of $40,000 or more per month for leased real estate.

If the franchisee is a corporation or other legal entity, they must designate at least one Manager acceptable to Big O Tires to receive training and manage the store's day-to-day operations. The initial training program must be attended by the franchisee or their Operator and the Manager or Managers, all of whom must complete the training program to Big O's satisfaction. If the franchisee or their Operator fails to successfully complete the training program, Big O Tires may require them to attend an additional training program at their cost or may terminate the Franchise Agreement. Each individual receiving the field training and certification must sign a Certification Program Agreement with Big O and the franchisee providing the training. Unless Big O waives the training requirements, the franchisee or their Operator must attend and successfully complete the training program before the Big O Store opens for business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.