What security agreements are included as executed originals in Exhibit D for Big O Tires?

According to the 2025 Big O Tires Franchise Disclosure Document, Exhibit D includes executed originals of certain agreements. Specifically, it includes the Big O Franchise Agreement, which Big O Tires will sign and return to the assignee after the agreement's requirements and the Primary Agreement are fulfilled. Additionally, Exhibit D contains an executed original of the Security Agreement covering Inventory, Accounts Receivable, Equipment, Furniture, Fixtures, and General Intangibles.

For a prospective Big O Tires franchisee, this means that upon signing the franchise agreement and meeting initial obligations, they will receive a signed copy of their franchise agreement. Furthermore, the franchisee will also sign a security agreement that gives Big O Tires a security interest in the franchisee's business assets. This security interest allows Big O Tires to potentially claim these assets if the franchisee fails to meet certain obligations under the franchise agreement.

The security agreement is a standard practice in franchising to protect the franchisor's interests. Franchisees should carefully review the terms of the security agreement with legal counsel to understand the full scope of the assets covered and the conditions under which Big O Tires could exercise its rights under the agreement. Understanding these details is crucial for managing the financial risks associated with the franchise.