Are there any advertising expenditures that Big O Tires franchisees must have approved?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 15.05 Approval of Advertising. Franchisee or the Local Group shall submit (through the mail, return receipt requested or an e-mail address designated by Big O, from time to time) to Big O for its prior written approval, samples of all marketing materials and advertising to be used by Franchisee that have not been prepared or previously approved in all respects by Big O or its designated agents, such approval by Big O shall not be unreasonably withheld. Franchisee shall submit tear sheets, receipts, and other evidence of such Advertising in the manner prescribed by Big O. Franchisee will not be required to submit to Big O copies of any proposed Advertising which has been adopted for use by the Local Group and which was previously approved by Big O for use by the Local Group. Franchisee shall not set up, maintain or utilize an Internet website or home page to sell Products and Services nor cause or allow the Licensed Marks, or any of them, to be used or displayed, in whole or in part, as an Internet domain name or on or in connection with any Internet website or home page without Big O's express prior written consent (which Big O may grant or withhold in its sole discretion), and then only in such manner and in accordance with such procedures, standards and specifications as Big O establishes from time to time.
- 15.06 CRM Program. Franchisee must participate in a customer relationship management program ("CRM Program") under which Big O or its approved supplier will send a number of postcards and other communications such as e-mails and text messages each month to certain categories of customers, which number may vary based on factors including Store performance and sales or other criteria Big O or the supplier designate, and which may change from time to time. Although Big O will not directly charge Franchisee a fee for this service, this service will be paid for in part by the National Marketing Program and in part from contributions from Big O. The CRM Program may be modified or discontinued at any time in Big O's sole discretion.
Nothing contained herein shall be construed to limit or otherwise restrict Big O's ability to make additional increases or decreases to Franchisee's contribution requirements to the Local Fund or National Marketing Program provided such requirements are implemented in accordance with the requirements contained in the Franchise Agreement.
15.07 Digital Marketing Program. Big O currently has a digital marketing and search engine optimization/marketing program ("Digital Marketing Program"). Franchisee must participate in and comply with the terms of the Digital Marketing Program, unless Big O agrees otherwise. The cost of operation of the Digital Marketing Program may be paid by the National Marketing Program.
16. STATEMENTS AND RECORDS
- 16.01 Invoices. Every sale of Products and Services from the Franchisee'
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires's 2025 Franchise Disclosure Document, franchisees must obtain prior written approval from Big O Tires for marketing and advertising materials that Big O Tires or its designated agents have not already prepared or approved. This approval process ensures that all advertising aligns with the brand's standards and marketing strategies. Franchisees must submit samples of these materials to Big O Tires for review, along with tear sheets, receipts, and other evidence of the advertising's use. However, franchisees are not required to submit advertising that has been adopted for use by the Local Group and previously approved by Big O Tires for the Local Group.
This requirement means that Big O Tires franchisees have some flexibility in creating their own advertising, but they must ensure it meets Big O Tires's standards before use. The FDD specifies that Big O Tires's approval will not be unreasonably withheld, suggesting a collaborative process. Franchisees also need to adhere to specific guidelines regarding internet presence, as they cannot set up or use an internet website or home page to sell products and services using Big O Tires's licensed marks without express prior written consent from Big O Tires.
Big O Tires also has a National Marketing Program that franchisees contribute to, with contributions capped at 1% of the previous month's Gross Sales. Big O Tires may increase the NMP Percentage Fee, but such increases are limited to one-tenth of one percent (0.1%) in any twelve consecutive month period, with additional increases possible under special advertising circumstances if proposed to the Franchise Advisory Council. Additionally, franchisees must participate in a customer relationship management (CRM) program managed by Big O Tires or its approved supplier, which involves sending communications to customers. While franchisees do not directly pay a fee for this service, it is funded in part by the National Marketing Program and contributions from Big O Tires.
Overall, the advertising guidelines for Big O Tires franchisees involve a mix of required participation in national programs, the need for approval of certain advertising materials, and restrictions on unauthorized use of the brand's trademarks online. These measures are designed to maintain brand consistency and ensure that advertising efforts are aligned with Big O Tires's overall marketing strategy.