What is the role of a 'Rider' in the Big O Tires franchise agreement?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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EXHIBIT "B-2"
SUCCESSOR FRANCHISE RIDER TO FRANCHISE AGREEMENT
BIG O TIRES, LLC, a Nevada limited liability company ("Big O"), and the undersigned franchisee ("Franchisee") entered into that certain Big O Franchise Agreement ("Agreement") contemporaneously herewith, and desire to supplement and amend certain terms and conditions of such Agreement by this Successor Franchise Rider to Franchise Agreement ("Rider"). The parties therefore agree as follows:
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- Term. Section 4.01 of the Agreement is hereby deleted in its entirety with the following substituted in its place:
- 4.01 Term. This Agreement shall take effect upon the Effective Date and, unless previously terminated pursuant to Section 19 hereof, its term shall extend until the earlier of the tenth (10th) anniversary of the Effective Date or such other Expiration Date as is stated on the Summary Pages. Franchisee agrees to operate its Big O Store for the full term of this Agreement.
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- Grant of Successor Franchise Rights. Article 5 of the Agreement is hereby deleted in its entirety.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, a 'Rider' serves to supplement and amend the terms and conditions of the standard Big O Tires Franchise Agreement. Specifically, the FDD mentions a "Successor Franchise Rider to Franchise Agreement" that Big O Tires and the franchisee may enter into to modify the original agreement.
The FDD also references a "Converter Rider," which outlines terms and conditions that add to or explain the existing terms of the Franchise Agreement. In cases of inconsistency, the Converter Rider's terms take precedence, superseding any conflicting terms in the original agreement. This suggests that Riders are used to address specific situations, such as when an existing business is converted into a Big O Tires franchise.
Additionally, the FDD lists several schedules that function as riders, including those related to lease agreements, franchisee incentives, and royalty rates. These schedules provide detailed information and modifications related to specific aspects of the franchise relationship. Prospective franchisees should carefully review all riders and schedules attached to the Franchise Agreement to fully understand their rights and obligations.