Does the table provide any information about the competition faced by Big O Tires outlets?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
| Outlets Per Quartile | 70 Top Quartile | artile 70 70 2nd Q | 2nd Quartile | 70 | 3rd Quartile | 70 | 4th Quartile | |
|---|---|---|---|---|---|---|---|---|
| Total Income | $4,710,948 | 100.0% | $3,079,268 | 100.0% | $ 2,359,608 | 100.0% | $1,617,374 | 100.0% |
| Cost of Goods Sold | $2,051,937 | 43.6% | $1,248,058 | 40.5% | $ 969,537 | 41.1% | $ 679,298 | 42.0% |
| Gross Profit | $ 2,659,010 | 56.4% | $1,831,210 | 59.5% | $ 1,390,070 | 58.9% | $ 938,076 | 58.0% |
| Total Labor | $1,180,011 | 25.0% | $ 828,622 | 26.9% | $ 652,290 | 27.6% | $ 485,504 | 30.0% |
| Advertising | $ 130,321 | 2.8% | $ 96,326 | 3.1% | $ 75,731 | 3.2% | $ 52,120 | 3.2% |
| Royalty | $ 181,110 | 3.8% | $ 115,841 | 3.8% | $ 88,559 | 3.8% | $ 56,672 | 3.5% |
| Total Occupancy | $ 182,628 | 3.9% | $ 164,501 | 5.3% | $ 133,683 | 5.7% | $ 123,113 | 7.6% |
| Utilities | $ 60,154 | 1.3% | $ 41,502 | 1.3% | $ 32,187 | 1.4% | $ 30,386 | 1.9% |
| Other Expenses | $ 400,534 | 8.5% | $ 221,197 | 7.2% | $ 252,059 | 10.7% | $ 193,908 | 12.0% |
| Total Operating Expenses | $ 2,134,757 | 45.3% | $ 1,467,989 | 47.7% | $ 1,234,508 | 52.3% | $ 941,704 | 58.2% |
| Net Income From Operations | $ 524,253 | 11.1% | $ 363,220 | 11.8% | $ 155,563 | 6.6% | $ (3,628) | -0.2% |
| Top Qu | 2nd Qu | V/NO/19 | 3rd Qu | CONTRACTOR OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF THE PARTY OF |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 85–89)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the provided table in Item 19 does not explicitly detail the competition faced by Big O Tires outlets. The table focuses on financial performance metrics, such as Total Income, Cost of Goods Sold, Gross Profit, and various operating expenses, broken down by quartiles. These quartiles represent different levels of financial performance among franchised Big O Tires stores, with the Top Quartile showing the highest average Total Incomes and the 4th Quartile showing the lowest. The data is based on stores that operated from January 1, 2024, through December 31, 2024, and met specific criteria related to operation length and data submission.
While the table offers insights into the financial performance of existing Big O Tires franchises, it does not provide a direct assessment of the competitive landscape. The expenses listed, such as advertising, royalty fees, total occupancy costs, and utilities, indirectly reflect the costs associated with competing in the market. However, the table does not identify specific competitors or market conditions that might influence a franchisee's performance. The document emphasizes that franchisees should conduct their own independent investigation of costs and expenses, potentially by consulting with current or former franchisees listed in the exhibits.
Prospective franchisees should be aware that the financial performance data presented is historical and may not be indicative of future results. Factors such as local market conditions, competition, and management skills can significantly impact a store's performance. Therefore, it is crucial for potential franchisees to conduct thorough market research to understand the competitive environment in their target area. This research should include identifying key competitors, assessing their market share, and evaluating their pricing strategies. Contacting existing franchisees and gathering local market data will be essential for making an informed investment decision.