Does Big O Tires have the right to approve or disapprove of the franchisee's Operators and Managers?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
11.01 Store Management. Franchisee's Store shall only be operated by the Operator or a Manager employed by the Franchisee who are subject to approval by Big O. All initial and subsequent Operators and Managers are also subject to approval by Big O. Franchisee will notify Big O of each initial and subsequent Operator and Manager prior to his or her appointment to give Big O a reasonable opportunity to determine whether Big O will exercise its right of approval or disapproval as to such Operator or Manager. Big O's approval, if required, will be conditioned upon the Operator's or Manager's successful completion of any training required by Big O. Big O may waive some or all of its initial training requirements for Operators or Managers who have already received such training as a result of their affiliation with another Store or Big O franchisee or in other circumstances, in its sole discretion. If Franchisee or Franchisee's Operator has not already successfully completed such training, he/she shall be required to successfully complete the training described in Section 7.01(c) above. Franchisee is solely responsible for recruiting, hiring, firing, and supervising employees to operate the Store. The employees of the Store will be employees of Franchisee. They are not employees or agents of Big O and Big O is not the joint employer of those persons. Franchisee will have sole authority and control over the day-to-day operations of the Big O Store and its employees and agents. Big O will have no right or obligation to direct Franchisee's employees and agents or to operate the Big O Store. It is Franchisee's responsibility to determine compensation of employees and agents, terms of employment, safety regulations, work assignments, work schedules, and working conditions. Any information regarding any of those issues provided to Franchisee by Big O are mere suggestions and Franchisee shall have the sole discretion to utilize such information or not. Franchisee is solely responsible for implementing training and other programs for its employees related to the legal, safe, and proper performance of their work, regardless of the fact that Big O may provide advice, suggestions, and certain training programs as described in this Agreement. Any such advice, suggestions, and training offered by Big O are provided to protect Big O's brand and the Licensed Marks and not to control the dayto-day operation of Franchisee's Big O Store.
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 retains the right to approve or disapprove a franchisee's initial and subsequent Operators and Managers. This means that while the franchisee is responsible for the day-to-day operations, hiring, and firing of employees, the individuals in charge of store management must meet Big O Tires' standards.
Before appointing an Operator or Manager, the franchisee must notify Big O Tires to allow them to determine whether they will exercise their right to approve or disapprove the candidate. Big O Tires' approval is often conditional upon the successful completion of required training. However, Big O Tires may waive some or all of the initial training requirements if the Operator or Manager has already received similar training through affiliation with another Big O Tires store or franchisee.
This approval process ensures that all Big O Tires locations are managed by qualified individuals who meet the franchisor's standards. While franchisees have autonomy over their employees, Big O Tires maintains control over key management positions to protect brand consistency and operational quality. Franchisees should factor in the time and potential costs associated with the approval and training of Operators and Managers when considering this franchise opportunity.