What standards and specifications does Big O Tires have for its stores?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
You must establish and operate your Big O Store in compliance with your Franchise Agreement and the standards and specifications contained in our confidential operating manual ("Manual"). Our Manual consists of various written, electronic, audio, video, and Internet instructions, including our Franchise Policies & Standards Manual, consisting of our policies and standards on various matters. The Manual also includes any training materials, including the online Learning Management System, or any other proprietary information and other materials stating Big O's standards, policies, procedures, technical bulletins or other information, including any information posted on the Big O Tires Website Business Center. The Manual is designed to protect our reputation and the goodwill of the Licensed Marks, it is not designed to control the day-to-day operations of your Big O Store. Our Manual may be modified by us periodically to reflect changes in authorized products and services, standards or service quality, and the operations of Big O Stores. It is your responsibility to maintain an updated Manual, or if provided electronically, to regularly check for updates to the Manual and maintain compliance with the current Manual. In the event of a dispute as to the contents of the Manual, the most recent revision made and issued by us shall control.
We have standards and specifications for your Store, the premises where your Store is located, equipment, signage, furniture, fixtures, wearables, supplies, forms, inventory, advertising materials, computer software and hardware, and most products and other items used in or sold through your Big O Store. Standards and specifications include standards for delivery, performance, warranties, signage, fixtures, design, appearance, quality and other matters. You must purchase or lease all products,
equipment, supplies, and services used in or sold through your Big O Store in accordance with our standards and specifications only from us or other sources approved by us. When you sign the Franchise Agreement, we will grant you online access to the Manual. Included in the Manual is a list of our approved suppliers. We have the right to change the standards and specifications included in the Manual, including the list of approved suppliers. You must comply with all standards and changes which are deemed, by their terms, to be mandatory; provided that the changes are applied in a reasonable and nondiscriminatory manner among comparable Big O franchisees. The Franchise Agreement also provides that you must comply with Big O's national fleet account policies and must participate in Big O's national fleet account programs, which are described in Item 11 (see paragraph 7 under "Continuing Obligations"). Also, periodically, we may institute pricing or discount programs in which the availability of lower prices or of discounts may depend, in whole or in part, on your meeting certain requirements established by us.
Tires. We sell lines of private label tires to Big O Tire Stores. These private label tires may be manufactured by Sumitomo Corporation, which holds a partial indirect ownership interest in us, or unaffiliated manufacturers. We may look to other manufacturers to produce tire products in the future. We do not manufacture tires. Most products are delivered to franchisees from the RDC servicing their area at a minimum of twice weekly. We commit to supply you with the Big O branded tire lines but we do not guarantee to supply you with any specific numbers or sizes of tires or with any other specific tire brands. However, we do have a fill rate policy which is described in Item 6, Note 2.
We are the only approved supplier of Big O private brand tires and other private brand products which are manufactured exclusively for us or TBC. We may add or change private brands of tires and other products periodically. We are also an approved supplier of various major brand tires. You must purchase your tires bearing the Big O trademark and other brands from the RDC in your area or, with our approval, other RDCs. In addition, you may purchase other lines of tires through the RDC or from any other approved source.
From the date at the end of the 180 day period from the date you open your Store (or in the case of a transferee or Conversion Store, from a date we designate), for the rest of the calendar year after this date and for each calendar year after that, you must carry a minimum of 700 tire units, consisting of a majority of Big O brand tires, Big O exclusive tires, or other brand tires periodically designated by us as exclusive to the Big O product screen. Big O may periodically change these requirements for its franchisees generally or for particular areas or circumstances.
We anticipate that purchases you make from us and our designated or approved sources will comprise 90% of your initial tire inventory investment and 80% or more of your ongoing purchases of tire products and supplies.
To differentiate our products in a commodity market, all Big O brand tires are sold with limited warranties periodically prescribed by us. You must offer and honor these limited warranties, including terms providing for free replacements. You must also honor warranties for certain products and services sold by non-Big O Stores in accordance with policies we may establish periodically; under our current policies, you must honor certain warranties for products and services sold by designated non-Big O, TBC affiliated retailers.
We currently designate a single supplier, ABS, to administer a tire protection warranty covering non-Big O brand tires sold by Big O Stores that is sold under the "Pro-Tec+" trade name. All franchisees must honor any Pro-Tec+ warranty sold by any Big O Store, subject to certain reimbursement rights related to such services as dictated by the current warranty program.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, franchisees must operate their stores in accordance with the Franchise Agreement and the standards and specifications outlined in the confidential operating manual, referred to as the "Manual." This manual contains written, electronic, audio, video, and internet-based instructions, including the Franchise Policies & Standards Manual, training materials, the online Learning Management System, and other proprietary information available on the Big O Tires Website Business Center. The Manual is designed to protect the brand's reputation and goodwill, not to control daily operations. Big O Tires may modify the Manual periodically to reflect changes in authorized products and services, standards, service quality, and store operations. Franchisees are responsible for maintaining an updated Manual and complying with its current version. In case of disputes, the most recent revision issued by Big O Tires will prevail.
Big O Tires has specific standards and specifications for various aspects of the store, including the premises, equipment, signage, furniture, fixtures, wearables, supplies, forms, inventory, advertising materials, computer software and hardware, and most products used or sold in the store. These standards cover delivery, performance, warranties, signage, design, appearance, quality, and other relevant matters. Franchisees must purchase or lease all products, equipment, supplies, and services used in or sold through their Big O Tires store from Big O Tires or other approved sources, adhering to the company's standards and specifications.
If a franchisee wishes to use a supplier not already approved and listed in the Manual, they must obtain written approval from Big O Tires. The approval process involves submitting a written request with evidence of the need for the products or services and ensuring they do not conflict with existing marketing programs. The supplier must demonstrate its ability to meet Big O Tires's standards and specifications, provide products or services on a timely basis, and prove its financial stability and good standing in the business community. Additionally, the supplier must indemnify Big O Tires and the franchisee against any claims or liabilities related to its products or services and provide adequate insurance coverage. Big O Tires will notify the franchisee of its decision within 90 days of receiving all necessary information. Big O Tires retains the right to revoke approval of any supplier at its discretion and will notify the franchisee if a previously approved supplier they are using is no longer approved.