What security is generally required by Big O Tires for other financing programs?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
| Financing Program | Items | Eligibility | Amount Financed | Interest Rate | Term | Security Required | Liability Upon Franchisees: | Payment | |
|---|---|---|---|---|---|---|---|---|---|
| Financed | Default | Waiver of Legal Rights | Terms | ||||||
| Other Financing (See Note 15) | Inventory | In our discretion | Varies. In last fiscal year, three franchisees borrowed a total of $ 299,952.53. | Prime plus 3% per annum. | Varies, generally not more than 36 months. In last fiscal year, no term longer than 36 months. | Varies. Generally, all assets of your Store. | As provided in Exhibits G and H (See Note 8). | As provided in Exhibits G and H (See Note 8). | Varies |
Source: Item 10 — FINANCING (FDD pages 48–55)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, the security required for 'Other Financing' programs generally includes all the assets of your store. This financing option is available at Big O Tires's discretion and is used to finance inventory.
The amount financed under this program varies; in the last fiscal year, three franchisees borrowed a total of $299,952.53. The interest rate is the prime rate plus 3% per annum, and the term generally does not exceed 36 months. In the last fiscal year, no term was longer than 36 months.
The specific liabilities and waivers of legal rights are detailed in Exhibits G and H, as referenced in Note 8 of the FDD. These exhibits likely contain the promissory note and security agreement, which outline the obligations and rights of both the franchisee and Big O Tires in the event of default or other legal matters. As with all financing offered by Big O Tires, participation in this program can be denied at their sole discretion due to regulatory implications or for any other reason.