What is the transfer fee for assigning a franchised Big O Tires store?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
. The transfer fee will be as set by Big O from time to time (and is currently $5,000). Franchisee acknowledges that such a transfer fee is appropriate as necessary to reimburse Big O for any expenses which may be incurred in its review, analysis, and preparation of any documentation relating to the Transfer, including legal and accounting fees, and additional assistance as may be requested by the Franchisee related to the Franchisee's resale of the Store but is not determined by the actual amount of such expenses and costs. In addition, if the transferee requires training, Franchisee or the transferee will also be charged a training fee of up to five thousand five hundred dollars ($5,500) for one person plus, in Big O's discretion, a reasonable additional training fee if additional training is required as described in Section 18.04(b)(iii), plus additional training fees shall apply for additional trainees. The transferee shall be responsible for all transportation, lodging and living expenses (other than lodging expenses for the first trainee) incurred by the transferee's trainees while attending the training. Big O shall be the sole arbiter of whether a Change in Control occurred as a result of a single Transfer or a group of Transfers. For any Transfer not involving an assignment of this Agreement or a Change of Control, Big O will, as a condition of any such Transfer, require the Franchisee or the transferee to pay a transfer fee (but no initial franchise fee) equal to Big O's expenses that it incurs in its review, analysis and preparation of any documentation relating to the Transfer, including legal and accounting fees and additional assistance as may be requested by the Franchisee related to the resale of the Store, but not more than one thousand five hundred dollars ($1,500).
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the transfer fee for assigning a franchise is currently $5,000. This fee is subject to change by Big O Tires. The FDD specifies that this transfer fee is required for any transfer involving an assignment of the Franchise Agreement or a change in control.
The $5,000 transfer fee is intended to reimburse Big O Tires for expenses incurred during the review, analysis, and preparation of documentation related to the transfer. These expenses can include legal and accounting fees, as well as any additional assistance requested by the franchisee in connection with reselling the store. However, the fee is not directly tied to the actual amount of these expenses.
In addition to the transfer fee, the transferee may also be required to pay a training fee of up to $5,500 for one person if additional training is required. The transferee is responsible for all transportation, lodging, and living expenses incurred by the trainees while attending the training, excluding lodging expenses for the first trainee. For transfers not involving an assignment of the agreement or a change of control, the transfer fee will be equal to Big O's expenses, but not more than $1,500.