What is the term length for a Successor Franchise Agreement for Big O Tires?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are an existing franchisee in good standing whose Franchise Agreement is expiring, you may renew your franchise by signing our then current form of Franchise Agreement ("Successor Franchise Agreement") for a successor term of 10 years. We may, in our sole discretion, agree to a shorter Successor Franchise Agreement term if you are unable to extend your lease or sublease for the full Successor Franchise Agreement term. We waive the payment of the initial franchise fee for a Successor Franchise Agreement, but you must pay a successor franchise administration fee. See Item 6 below.
Source: Item 5 — INITIAL FEES (FDD pages 14–21)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, an existing franchisee in good standing has the option to renew their franchise agreement for a term of 10 years by signing the then-current form of the Successor Franchise Agreement. This provides a degree of assurance and continuity for established franchisees.
However, Big O Tires retains the discretion to offer a shorter term for the Successor Franchise Agreement if the franchisee is unable to secure a lease or sublease that matches the full 10-year term. This flexibility acknowledges the practical challenges franchisees may face in aligning their lease terms with the franchise agreement duration.
It is important to note that while the initial franchise fee is waived for a Successor Franchise Agreement, the franchisee is still required to pay a successor franchise administration fee, as detailed in Item 6 of the FDD. This fee should be considered when evaluating the costs associated with renewing the franchise agreement.