What responsibility does Big O Tires have to advise franchisees regarding legislative or legal developments that may affect their franchised business?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall comply with all applicable federal, state, and local laws, rules and regulations, including, without limitation, environmental laws related to tire disposal. Big O has no obligation to advise Franchisee of any legislative or other legal developments that may affect its Franchised Business. Franchisee is solely responsible for inquiring about and becoming familiar with all applicable laws, rules and regulations, and determining those actions required for compliance. Franchisee shall obtain any and all permits, certificates, and licenses required for the full and proper conduct of the Franchised Business. Any information Big O provides to Franchisee regarding applicable laws, rules or regulations does not relieve Franchisee of its responsibility to consult with its own legal advisor and otherwise take appropriate action to inquire about and comply with applicable laws, rules and regulations.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, Big O Tires has no obligation to advise franchisees about legislative or legal changes that could impact their franchised business. The FDD states that franchisees are solely responsible for understanding and complying with all applicable federal, state, and local laws, rules, and regulations. This includes environmental laws related to tire disposal and any other legal requirements relevant to operating a Big O Tires franchise.
This means that as a prospective Big O Tires franchisee, you must take full responsibility for staying informed about all legal and regulatory developments affecting your business. Big O Tires will not proactively provide updates or guidance on these matters. Franchisees are expected to conduct their own due diligence, seek legal counsel, and ensure they are fully compliant with all applicable laws.
Big O Tires' lack of obligation to provide legal advice does not relieve franchisees of their duty to comply with all laws. Any information Big O Tires does provide is not a substitute for franchisees consulting their own legal advisors. This underscores the importance of franchisees seeking independent legal counsel to ensure they fully understand their obligations and responsibilities under the law. This is a common practice in franchising, where franchisees are considered independent business owners responsible for their own compliance.