Is there an exception to the rule that Big O Tires advertising must be approved?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee which are not at the time listed in the Manual as approved by Big O for use by the Franchisee, except in accordance with the following procedure:
- (a) The Franchisee must submit a written request to Big O for approval of the supplier;
- (b) The Franchisee must demonstrate to Big O the existence of a need for the product or service and that the product or service does not conflict with Big O's existing marketing program of Products and Services;
- (c) The supplier must demonstrate to Big O's reasonable satisfaction, that it is able to supply a commodity to the Franchisee meeting Big O's specifications for such commodity and that it is able to do so on a timely basis;
- (d) The supplier must demonstrate to Big O's reasonable satisfaction that the supplier is of good standing in the business community with respect to its financial soundness and reliability of its product and service;
- (e) The supplier must agree to indemnify and hold Big O and the Franchisee harmless from and against any claim or liability by reason of the supplier's products, including without limitation, defects in materials and workmanship and supplier must provide to Big O certificates or other evidences of insurance coverage with coverage limits sufficient to cover the risks and an endorsement reflecting that Big O and Franchisee are named as additional insureds under the supplier's insurance policies;
- (f) Big O must be reasonably satisfied that the commodity is priced competitively; and
- (g) Suppliers of tire products must meet the then current requirements under the TREAD Act.
Big O's current practice is to notify the Franchisee of its approval or disapproval in writing as soon as practicable. Big O may revoke its approval of an approved supplier at any time in its sole discretion.
Source: Item 18 — PUBLIC FIGURES (FDD page 85)
What This Means (2025 FDD)
According to the 2025 Big O Tires FDD, franchisees must have written approval from Big O Tires to use advertising materials not provided by the company. To gain approval, the franchisee must submit a written request and demonstrate a need for the specific product or service advertised, ensuring it doesn't conflict with Big O's existing marketing programs.
The supplier of the advertising material must prove they can meet Big O Tires's specifications on a timely basis and are in good standing within the business community regarding financial stability and reliability. The supplier must also agree to indemnify Big O Tires and the franchisee against any claims or liabilities arising from their products, including defects, and provide adequate insurance coverage, naming Big O Tires and the franchisee as additional insureds.
Big O Tires needs to be satisfied that the commodity is priced competitively. For tire product suppliers, they must meet the requirements under the TREAD Act. Big O Tires will notify the franchisee of approval or disapproval in writing when practicable and may revoke approval of a supplier at any time at their discretion. This process ensures that all advertising aligns with Big O Tires's brand standards and legal requirements, protecting both the franchisor and franchisees.