What was the total debt for Big O Tires as of March 31, 2024?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
s where the Company delivers tires to customers on their behalf. See Note 2.
7. Related Parties and Major Suppliers
Related Parties
The Company's operations are managed through its executive officers and Board of Managers. Upon formation of the joint venture, the Company had a total of $400,000 of long-term debt due equally to SCOA and Compagnie Financiere Michelin SCmA ("CFM"). The Company also executed two credit facilities with
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, as of March 31, 2024, the balances of loans the company had with SCOA and CFM were $0. The company had a total of $400,000 of long-term debt due equally to SCOA and Compagnie Financiere Michelin SCmA ("CFM") upon formation of the joint venture. The company also executed two credit facilities with SCOA and CFM for $100,000 each, respectively.
This indicates that Big O Tires had successfully paid off these loans by March 31, 2024. For a prospective franchisee, this could be a positive sign, suggesting the company is managing its debt effectively.
However, it is important to note that this information pertains specifically to loans from SCOA and CFM. It does not provide a complete picture of Big O Tires' overall debt situation. A potential franchisee should investigate further to understand the company's total liabilities and financial health.