What right does Big O Tires waive regarding the transfer of the Big O Tires Store?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
ctions contemplated in the Primary Agreement and this Agreement, any other representation and agreements between them and the ASSIGNOR and as to the related asset transfers, whether such Claims exist now or hereafter arise.
The following provision applies for any ASSIGNORS, ASSIGNEES, and Guarantors of an ASSIGNOR or ASSIGNEE in California:
It is intended that this Agreement shall be effective as a bar to each and every action and cause of action related to the released claims, whether known or unknown, foreseen or unforeseen, suspected or unsuspected, that each party may have against the BIG O Parties and each party expressly waives any and all rights under Section 1542 of the California Civil Code, which provides:
A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS THAT THE CREDITOR OR
RELEASING PARTY DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, AND THAT IF KNOWN BY HIM OR HER, WOULD HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR OR RELEASED PARTY.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, Big O Tires waives certain rights related to claims depending on the location of the store. Specifically, for assignors, assignees, and guarantors in California, Big O Tires waives all rights under Section 1542 of the California Civil Code. This section states that a general release does not extend to claims that the releasing party does not know or suspect to exist at the time of executing the release, and that if known, would have materially affected their settlement with the debtor or released party. This means that in California, the release is intended to bar every action and cause of action related to the released claims, even if those claims are unknown or unforeseen.
For assignors, assignees, and guarantors in Washington, the release does not apply to any claims under the Washington Franchise Investment Protection Act, RCW 19.100, and its rules. This means that franchisees in Washington retain their rights to pursue claims under this specific law, even after the transfer.
These waivers and limitations are important for prospective franchisees to understand, as they define the extent to which they are releasing Big O Tires from potential liabilities when transferring their store. The specific state law provisions outline what rights are being waived and what rights are being retained, which can have significant legal and financial implications for both the seller (assignor) and the buyer (assignee) of a Big O Tires franchise.