What is the timeframe that a Big O Tires audit can cover?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Big O may audit and inspect documents covering a period beginning with the date on which Franchisee first acquired its Franchised Business and ending on the date such audit is concluded.
Inspections and audits may be conducted following the termination of this Agreement for any reason.
If Franchisee has understated any amount due Big O or any Local Group or Local Fund, it shall tender payment of the amount due not later than ten (10) days following receipt of the auditor's report, plus interest calculated at a rate which is the lower of eighteen percent (18%) per annum or the highest rate permitted by law.
This interest rate shall apply as the post-judgment interest rate, regardless of the applicable statutory rate, in the event of any legal actions related to this Agreement.
In addition, if any such examination or audit discloses that Franchisee has understated its Store's Gross Sales by more than two percent (2%) or if Franchisee obstructs or otherwise fails to cooperate with Big O's examination or audit, Franchisee shall also be obliged to reimburse Big O for the cost and expense of such examination or audit.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, Big O Tires has the right to audit and inspect a franchisee's documents. This audit can cover the period starting from the date the franchisee first acquired their franchised business and ending on the date the audit concludes.
Big O Tires can conduct these audits and inspections at the store location without prior notice during normal business hours or at reasonable times. Alternatively, Big O Tires can request that the franchisee send records to Big O Tires' offices or another location for inspection or audit. The franchisee is responsible for the expenses associated with collecting and delivering the requested documents, which must be certified as true, complete, and correct.
Furthermore, Big O Tires retains the right to conduct inspections and audits even after the franchise agreement has been terminated, regardless of the reason for termination. If an audit reveals that the franchisee has understated any amount due to Big O Tires or any local group or fund, the franchisee must pay the amount due within ten days of receiving the auditor's report, along with interest calculated at the lower of 18% per annum or the highest rate permitted by law. Additionally, if the understatement of gross sales exceeds 2% or if the franchisee obstructs the audit, the franchisee will be responsible for reimbursing Big O Tires for the cost of the audit.