What security agreements and financing documents must the ASSIGNEE enter into as required by Big O Tires?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
| c. ASSIGNEE shall, in addition to the execution of the Franchise Agreement as required in Paragraph 6 above, enter into security agreements and other financing documents as may be required by BIG O, and any and all agreements as are listed in Exhibit D, attached hereto and incorporated herein by this reference. |
|---|
| d. ASSIGNEE shall also prepare, file and publish a Fictitious Business Name Statement |
| for ASSIGNEE using the business name(s) (see Section |
| 9.04 of Franchise Agreement). |
| 8. Termination of ASSIGNOR'S Franchise Agreement. Upon completion and consummation of |
| all actions and transactions required and contemplated under the Primary Agreement and this Agreement |
| and fulfillment of all other obligations ASSIGNOR has to BIG O under ASSIGNOR'S Franchise |
| Agreement with BIG O and/or accounts and notes payable or other obligations of ASSIGNOR to BIG O |
| with regard to the Big O Tires Store, BIG O shall terminate ASSIGNOR'S Franchise Agreement relating |
| to the Big O Tires Store. |
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, an ASSIGNEE (the party acquiring the franchise) must enter into security agreements and other financing documents as required by Big O Tires. These agreements are detailed in Exhibit D of the Agreement and Consent to Assignment of Big O Tires Store.
In addition to these documents, the ASSIGNEE is required to execute a new Franchise Agreement with Big O Tires. This new agreement acknowledges that the ASSIGNEE has received a copy of Big O Tires' Franchise Disclosure Document, including all exhibits, at least seven business days before signing. Upon the closing date of the transfer, the original Franchise Agreement between the ASSIGNOR (the seller) and Big O Tires will be terminated and have no further effect.
Furthermore, the ASSIGNEE must prepare, file, and publish a Fictitious Business Name Statement using the business names as specified in Section 9.04 of the Franchise Agreement. The completion of all required actions and transactions under the Primary Agreement, along with fulfilling all obligations the ASSIGNOR owes to Big O Tires, will lead to the termination of the ASSIGNOR'S Franchise Agreement related to the Big O Tires store.