What is the 'Restrictive Period' as defined in the Big O Tires agreement, and how long does it last?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
- (m) RESTRICTIVE PERIOD means the period commencing on the expiration or earlier termination of a Franchise Agreement and ending on the earlier of (i) the date which is two (2) years following the expiration or earlier termination of the Franchise Agreement, or (ii) as to each Local Customer of a Authorized Location subject to a terminated Franchise Agreement, the date the Local Customer has purchased a product or service, other than any warranty related purchase, from a Competing Regional Store, so that, in such event, said customer is no longer deemed a Local Customer.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the Restrictive Period is defined as the time frame that begins when a Franchise Agreement expires or is terminated early. This period impacts what Big O Tires can do with customer data from the terminated franchise.
The Restrictive Period lasts for two years following the expiration or earlier termination of the Franchise Agreement. However, the Restrictive Period can end sooner for specific customers. If a 'Local Customer' of the terminated Big O Tires location purchases a product or service (excluding warranty-related purchases) from a 'Competing Regional Store', that customer is no longer considered a 'Local Customer', and the restrictions related to that customer end.
During the Restrictive Period, Big O Tires agrees not to market to any 'Local Customer' of the Designated Location, provided the franchisee was in full compliance with all termination provisions, gives Big O Tires written notice of compliance within 30 days of termination, and Big O Tires does not dispute compliance in writing within 15 days of receiving the notice. If Big O Tires disputes compliance, the dispute goes to the Franchise Advisory Council, which has 60 days to decide. Until the Council decides, Big O Tires will not market to those Local Customers. However, Big O Tires and its franchisees can still access the customer database to provide warranty work and follow-up responses during the Restrictive Period, without violating the marketing restrictions.