Who is responsible for maintaining the leased premises for a Big O Tires location?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Tenant shall operate its business from the Leased Premises continuously as provided in Subsection 5.2 of this Lease.
Authorized Service Areas.
All repair and service work performed by the Tenant shall be performed inside the Tenant's Leased Premises and not on the parking area of the Leased Premises, provided however that initial inspections may be conducted outside the Leased Premises.
Containment and Disposal of By-Products of Service/ Repair Work.
Every effort shall be made by Tenant to insure that by-products of service and repair work such as, but not limited to, tires, oils, greases, antifreeze, additives, compounds and lubricants are contained in Tenant's Leased Premises and disposed of in an authorized manner as determined by the Landlord, and local laws and ordinances.
Storage of Repair Vehicles.
All vehicles requiring overnight storage must be housed in the Tenant's Leased Premises or other pre-authorized storage area as determined by Landlord.
By Big O's election, Big O agrees to assume the obligations of the Tenant to Landlord under the Lease as of the date Big O or its affiliate or successor is given actual possession of the Premises.
Big O will not be required to cure any default of Tenant if Big O elects to take over possession of the Premises hereunder, Landlord shall complete any of Tenant's deferred maintenance obligations related to the Premises within 60 days after Big O's election.
Franchisee agrees to construct all improvements to the Premises and the Store in compliance with plans and specifications approved by Big O. Franchisee agrees to purchase, lease or otherwise use in the establishment and operation of the Big O Store only those fixtures, equipment, signs and hardware and/or software that Big O has approved as meeting its specifications and standards for quality, design, appearance, function and performance. Franchisee shall purchase or lease approved brands, types or models of fixtures, equipment, and signs only from suppliers designated or approved by Big O. Franchisee agrees to place or display at the Premises only such signs, logos and display materials that Big O approves from time to time. Franchisee agrees, at its sole expense, to do or cause to be done the following prior to opening the Big O Store for business: (i) secure all required financing; (ii) obtain all required permits and licenses; (iii) construct all required improvements and decorate the Store in compliance with approved plans and specifications approved by Big O pursuant to Section 7.01(b) below; (iv) purchase (or lease) and install all fixtures, equipment and signs required by Big O for the Big O Store; (v) purchase an opening inventory of tires and supplies in accordance with Section 14.01 and 14.02; (vi) provide Big O with copies of all required insurance policies, or such other evidence of coverage and payment as Big O requests; and (vii) provide Big O with any other documents as may be reasonably required by Big O, including but not limited to financing statements. Tenant shall be permitted to temporarily hang on the exterior of the building professionally rendered signs and banners, upon the prior approval of the Landlord and provided the same are maintained in a clean and undamaged condition.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, the responsibility for maintaining the leased premises is shared between the tenant (franchisee) and the landlord. The franchisee is generally responsible for conducting business operations and ensuring that any service or repair work is performed inside the leased premises. The franchisee must also properly contain and dispose of by-products of service/repair work, like tires and oils, in an authorized manner as determined by the landlord and local laws. Additionally, any vehicles requiring overnight storage must be housed inside the leased premises or another pre-authorized storage area determined by the landlord.
The landlord also has specific responsibilities regarding the premises. The landlord determines the authorized manner for disposal of service by-products and may designate pre-authorized storage areas for vehicles. If Big O Tires takes possession of the premises due to franchisee default, the landlord is responsible for completing any of the franchisee's deferred maintenance obligations within 60 days of Big O Tires' election to take possession.
Furthermore, the franchisee must construct all improvements to the premises in compliance with plans approved by Big O Tires and must use only approved fixtures, equipment, and signs. Before opening, the franchisee is responsible for securing financing, obtaining permits and licenses, constructing improvements, purchasing and installing fixtures and equipment, and providing required insurance policies. The franchisee is also responsible for maintaining temporary signs in a clean and undamaged condition, subject to the landlord's prior approval. These provisions ensure that the Big O Tires location meets brand standards and complies with local regulations, while also outlining the landlord's role in maintaining the property's condition and compliance.