What is the total amount of owned property lease payments for Big O Tires 'Thereafter'?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
hibit "E". Tenant's shareholders, members, partners, officers, directors, as the case may be, and their spouses, as required by Landlord, shall execute the guaranty attached hereto as Exhibit "F".
2.2. Base Rent Adjustment. Beginning on the first day of the first month of the fourth (4th) Lease year of the term of this Lease, and for each three (3) year period of the Term thereafter including any Extended Terms if exercised, the Base Rent shall be subject to an annual increase by the greater of nine percent (9%) or the amount of the increase in the Consumer Price Index ("Index") during the preceding three year period's Base Rent. The Index which is published most immediately preceding the date of the adjustment period in question commences (the "Extension Index") shall be compared with the Index published most immediately preceding the date the previous three-year period commenced (the "Beginning Index"). If the Extension Index has increased over the Beginning Index, the Base Rent shall be set by multiplying the then-current Base Rent by a fraction, the numerator of which is the Extension Index and the denominator of which is the Beginning Index. This adjustment process shall be continued for each three (3) year period of the Term, including any Extended Terms if exercised;
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
I am unable to provide the total amount of owned property lease payments for Big O Tires 'Thereafter' with the information provided in the 2025 Franchise Disclosure Document excerpts. The excerpts discuss base rent adjustments and increases to rent, but do not provide specific figures for lease payments.
The excerpts detail that beginning on the first day of the first month of the fourth lease year, and for each three-year period thereafter, the base rent is subject to an annual increase. This increase will be the greater of nine percent or the amount of increase in the Consumer Price Index during the preceding three-year period's base rent. The increase in base rent will not be less than nine percent or more than eighteen percent calculated over the prior three-year adjustment period.
To determine the total amount of owned property lease payments for Big O Tires 'Thereafter', a prospective franchisee should ask the franchisor for specific details on lease terms, including initial base rent, the frequency and method of rent adjustments, and any additional fees or charges associated with the property lease. This information is crucial for accurately forecasting expenses and assessing the financial viability of the franchise.