What is the total net favorable leasehold interest for Big O Tires?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
d revenues by business operational unit and major products and services categories for the years ended March 31, 2025, 2024 and 2023:
| | Amounts | | Amortization | | Amount | |---|---|---|---|---|---| | Total favorable leasehold interest | $1,402 | $ | {1,039) | $363 | | | Total unfavorable leasehold interest | | {2,090} | 2,072 | (18} | | | Total net favorable | | | | | | | leasehold interest | $(688) | $1,033 | $345 | | |
**(A Joint Venture of Michelin North America, Inc.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, there are two instances provided regarding the total net favorable leasehold interest. In one instance, the total favorable leasehold interest is listed as $1,402, with an amortization of $(1,039), resulting in an amount of $363. The total unfavorable leasehold interest is listed as $(2,090) with an amortization of $2,072, resulting in an amount of $(18). The total net favorable leasehold interest is $(688) with an amortization of $1,033, resulting in an amount of $345.
In another instance, the total favorable leasehold interest is $4,188, with an amortization of $(2,895), resulting in an amount of $1,293. The total unfavorable leasehold interest is $(17,773) with an amortization of $11,305, resulting in an amount of $(6,468). The total net unfavorable leasehold interest is $(13,585) with an amortization of $8,410, resulting in an amount of $(5,175).
It is important to note that one instance results in a net favorable leasehold interest, while the other results in a net unfavorable leasehold interest. A prospective franchisee should carefully review these figures and seek clarification from Big O Tires regarding the factors that contribute to these differences and how they might impact their specific franchise location.