Under the Big O Tires agreement, what does 'inventory' include?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
- II. To be transmitted monthly within 10 days after the last day of the preceding month:
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Inventory status report, as of the last day of the preceding month, providing detailed reporting on quantity on hand, description, size, and cost for all tires in inventory, to include proper manufacturer code, SKU number, line/account code classification in conformance with the user documentation for the Software System, as more fully described in the SaaS User Agreement), whether contained in Big O's product data file or purchased through Franchisee's outside suppliers.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, franchisees must submit an inventory status report monthly. This report should detail the quantity on hand, description, size, and cost for all tires in inventory. The report must include the manufacturer code, SKU number, and line/account code classification, following the software system's user documentation. This applies whether the tires are from Big O's product data file or purchased from outside suppliers.
Big O Tires franchisees are expected to maintain a complete line of Big O private brand tires, related merchandise, and other Products and Services. The quantities are determined by Big O. Franchisees must stock at least the minimum number of tires designated by Big O, with a majority consisting of Big O brand tires, Big O exclusive tires, or other brand tires periodically designated by Big O as exclusive to the Big O product screen. Big O can change these requirements for franchisees generally or for specific areas or circumstances.
Prior to opening, a Big O Tires franchisee must stock the store with Products and Services and supplies in amounts required by Big O. Franchisees can only offer or sell products and services approved in writing by Big O and from sources approved by Big O. Big O does not have to approve any product, service, or merchandise selected by the Franchisee.