Is the successor franchise administration fee for a Big O Tires franchise refundable?

According to the 2025 Big O Tires FDD, the document does not specify whether the successor franchise administration fee is refundable or non-refundable. However, the FDD does state that the franchisee shall pay Big O Tires' successor franchise administration fee equal to Big O Tires' time to process the successor franchise multiplied by Big O Tires' hourly rate (as set by Big O Tires from time to time) upon execution of the Successor Franchise Agreement.

Since the FDD does not explicitly state whether this fee is refundable, it is important for prospective franchisees to clarify this point with Big O Tires during their due diligence. Understanding the refundability of this fee can impact a franchisee's financial planning, especially if the renewal or successor agreement does not proceed as expected.

In the absence of clear information in the FDD, potential franchisees should ask Big O Tires about the specific circumstances under which the successor franchise administration fee would be refunded. Common reasons for refunds in franchise agreements might include failure to reach an agreement on renewal terms or denial of the renewal application by the franchisor. Knowing the conditions for a potential refund can help franchisees make informed decisions about their long-term investment with Big O Tires.