Does the table provide any information about the expenses of 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's 2025 Franchise Disclosure Document, Item 19 includes financial performance representations based on data from existing U.S. franchised Big O Tires stores. Part B of Item 19 contains a table that provides a breakdown of various expenses for stores that operated from January 1, 2024, through December 31, 2024, and met specific criteria, such as operating for at least 12 consecutive months and providing reliable financial data. The table categorizes these stores into quartiles based on their Total Income, offering a detailed look at the cost structure across different performance levels.
The expense information provided in the table includes Cost of Goods Sold, Total Labor, Advertising, Royalty, Total Occupancy, Utilities, and Other Expenses. For example, the Top Quartile stores reported an average Total Income of $4,710,948, with Cost of Goods Sold at $2,051,937 (43.6%) and Total Labor at $1,180,011 (25.0%). In contrast, the 4th Quartile stores had an average Total Income of $1,617,374, with Cost of Goods Sold at $679,298 (42.0%) and Total Labor at $485,504 (30.0%). These figures are presented both in dollar amounts and as a percentage of Total Income, allowing for easy comparison across quartiles.
This level of detail can be highly valuable for prospective Big O Tires franchisees, as it provides insight into the typical expenses associated with operating a franchise and how these expenses vary with income levels. By reviewing this information, potential franchisees can develop more realistic financial projections and understand the key drivers of profitability in the Big O Tires system. However, the FDD also cautions that individual results may vary and that there is no assurance that a new franchisee will achieve the same level of financial performance as the stores included in the representation. It is recommended that prospective franchisees consult with financial advisors to carefully evaluate these figures and estimate their own potential expenses.