Does the table provide any information about the net profit of Big O Tires outlets?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Part B of this financial performance representation includes the average Total Income, Gross Profit, and Net Income, in addition to certain expense and margin information for franchised U.S. Big O Tires Stores that operated from January 1, 2024 through December 31, 2024 and met the following criteria: (i) the Store had operated for at least 12 consecutive months as of December 31, 2024, (ii) the Store furnished financial data to us for the year 2024 with information regarding expenses that we believe to be reliable, and (iii) the Store was under the same ownership for the period from January 1, 2024 through December 31, 2024. There were 463 total operating franchised outlets in the U.S. as of December 31, 2024 and 280 met the criteria (the "Part B Reporting Stores"), representing approximately 61.3% of the U.S. outlets of any category of Store (that is, franchised PDF Stores and Franchised BFF Stores). There were 6 Stores that closed for various reasons during 2024, none of which were open less than 12 months.
Of the 280 Part B Reporting Stores, as of December 31, 2024: (a) 8 (about 2.9%) were franchised PDF Stores, and 272 (about 97.1%) were franchised BFF Stores; and (b) the 8 franchised PDF Stores constituted 32.0% of all the franchised PDF Stores, and the 272 franchised BFF Stores constituted about 62.1% of all the franchised BFF Stores.
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, including data on net income. Part B of Item 19 contains information regarding the average Total Income, Gross Profit, and Net Income for franchised U.S. Big O Tires stores that operated from January 1, 2024, through December 31, 2024, and met specific criteria, such as operating for at least 12 months and providing reliable financial data.
Specifically, the average Total Income of all Part B Reporting Stores was $2,941,799. Net Income From Operations averaged 8.8% of Total Income for these stores. This data is derived from 280 stores that met the criteria for Part B Reporting Stores, representing approximately 61.3% of all U.S. Big O Tires outlets. The document also mentions that the Part B Reporting Stores were separated into quartiles based on average Total Incomes, providing a range of financial performance.
This information is valuable for prospective franchisees as it offers insight into the potential earnings and cost structure of a Big O Tires franchise. However, the FDD cautions that individual results may vary and there is no assurance that a new franchisee will achieve the same level of financial performance. It is important for potential franchisees to consult with financial advisors and conduct their own independent investigation of costs and expenses associated with operating a Big O Tires store.