Does the table provide any information about the average revenue of Big O Tires outlets?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Part A of this financial performance representation includes the historical average annual Gross Revenues for U.S. franchised Big O Tires Stores that operated from January 1, 2024 through December 31, 2024 (the "2024 Year") and met the following criteria: (i) the Store had operated for at least 12 consecutive months as of December 31, 2024, and (ii) the Store reported Gross Revenues data to us for each month of the full 2024 Year. As of the end of the 2024 Year, there were a total of 463 franchised Big O Tires Stores in operation in the U.S., however only 457 met the criteria (the "Part A Reporting Stores"). There were 6 Stores that closed for various reasons during 2024, none of which were open less than 12 months. Company-owned outlets are not included in this Part A table.
Of the 457 Part A Reporting Stores, as of December 31, 2024: (a) 25 (about 5%) were franchised PDF Stores, and 432 (about 95%) were franchised BFF Stores; and (b) the 25 franchised PDF Stores constituted 100% of the franchised PDF Stores, and the 432 franchised BFF Stores constituted about 98.6% of all the franchised BFF Stores. As of December 31, 2024, the 457 Part A Reporting Stores were about 98.7% of the 463 franchised Stores of any category of Store (that is, franchised PDF Stores and franchised BFF Stores).
We separated the Part A Reporting Stores into 4 quartiles based on average Gross Revenues, with the Top Quartile reflecting the results of those with the highest average Gross Revenues for the 2024 Year and the 4th Quartile reflecting those with the lowest average. The 2nd and 3rd Quartiles reflect results of those Big O Tires Stores with the second highest and second lowest average, respectively. The results of
the Top 10% of Part A Reporting Stores (46 Stores) and Bottom 10% of Part A Reporting Stores (46 Stores), in terms of Gross Revenues, are also stated.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–89)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, Item 19 includes financial performance representations based on historical data from existing U.S. franchised Big O Tires stores. Part A of Item 19 specifically addresses gross revenues, while Part B covers gross revenues and cost analysis.
Part A includes the historical average annual Gross Revenues for U.S. franchised Big O Tires Stores that operated from January 1, 2024, through December 31, 2024, provided they operated for at least 12 consecutive months and reported gross revenues data for each month of the year. Out of 463 franchised Big O Tires Stores, 457 met these criteria. The average annual Gross Revenues of all Part A Reporting Stores was $2,824,712.79, and 40.9% of these stores (187 stores) exceeded this average.
Part B includes the average Total Income, Gross Profit, and Net Income, along with expense and margin information, for franchised U.S. Big O Tires Stores that operated from January 1, 2024, through December 31, 2024, and met specific criteria, including providing reliable financial data. Of the 463 total operating franchised outlets, 280 met the criteria for Part B, representing approximately 61.3% of the U.S. outlets. The average Total Income of all of the Part B Reporting Stores was $2,941,799.
The FDD also emphasizes that individual results may vary and there is no assurance that a franchisee will earn as much as the averages presented. Prospective franchisees are encouraged to consult with financial advisors and conduct their own independent investigation of costs and expenses.