What is the Big O Tires tenant's responsibility regarding hazardous materials on the leased premises?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
ons pose or potential pose a human health risk to other parties; or (3) the Tenant expands its use, storage, or treatment of any Hazardous Material(s) in a manner inconsistent with the safe operation of the Leased Premises. Should Landlord consent in writing to Tenant bringing, using, storing or treating any hazardous Material(s) in or upon the Leased Premises, Tenant shall strictly obey and adhere to any and all federal, state or local laws, ordinances, orders, rules, regulations, codes or any other governmental restrictions or requirements (including but not limited to CERCLA and RCRA) which in any way regulate, govern or impact Tenant's possession, use, storage, treatment, or disposal of said Hazardous Material(s). In addition, Tenant represents and warrants to Landlord that (1) Tenant shall apply for and remain in compliance with any and all federal, state or local permits in regard to Hazardous Materials (excluding those Hazardous Materials that were present in the Leased Premises prior to Tenant's occupancy and those Hazardous Materials brought upon the Leased Premises by Landlord after Tenant's occupancy); (2) Tenant shall report to Landlord and any and all applicable governmental authorities any release of reportable quantities of any Hazardous Material(s) (excluding those Hazardous Materials that were present in the Leased Premises prior to Tenant's occupancy and those Hazardous Materials brought upon the Leased Premises by Landlord after Tenant's occupancy) as required by any and all federal, state or local laws, ordinances, orders, rules, regulations, codes or any other governmental restrictions or requirements; (3) Tenant, within five (5) days of receipt, shall send to Landlord a copy of any notice, order, inspection report, or other document issued by any governmental authority relevant to the Tenant's compliance status with environmental or health and safety laws; and (4) Tenant shall remove from the Leased Premises all Hazardous Materials (excluding those Hazardous Materials that were present in the Leased Premises prior to Tenant's occupancy and those Hazardous Materials brought upon the Leased Premises by Landlord after Tenant's occupancy) at the termination of this Lease.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires FDD, the tenant has specific responsibilities regarding hazardous materials on the leased premises. If contamination of the leased premises occurs due to the tenant's actions, or if the tenant is legally liable for damages resulting from contamination (excluding pre-existing conditions or landlord-introduced materials), the tenant must indemnify and defend the landlord against all claims, damages, expenses, and losses. This includes costs related to investigations, cleanup, and restoration work required by governmental agencies.
The Big O Tires franchisee is responsible for taking necessary actions to return the leased premises to compliance with applicable laws at their own expense if the contamination was caused or permitted by them. However, the landlord's written approval must first be obtained for such actions, and such approval cannot be unreasonably withheld.
Furthermore, if the Landlord consents to the Big O Tires tenant bringing, using, storing, or treating any hazardous materials on the premises, the tenant must strictly adhere to all federal, state, and local environmental laws and regulations. The tenant must also apply for and comply with all necessary permits, report any releases of hazardous materials to the landlord and relevant authorities, provide the landlord with copies of any related governmental notices or reports, and remove all hazardous materials from the premises upon termination of the lease (excluding pre-existing conditions or landlord-introduced materials).