Under what circumstances can either party immediately terminate the Big O Tires agreement?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
Big O may terminate this Agreement for good cause, without prejudice to the enforcement of any legal or equitable right or remedy, immediately upon giving written notice of such termination and the reason or cause for the termination, and, except as hereinafter provided, without providing Franchisee an opportunity to cure the default.
Without in any way limiting the generality of the meaning of the term "good cause," the following occurrences shall constitute sufficient basis for Big O to terminate the Agreement:
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, Big O Tires can terminate the franchise agreement immediately for good cause by providing written notice, without allowing the franchisee an opportunity to cure the default. The FDD does not define "good cause" but states that certain occurrences will constitute sufficient basis for Big O Tires to terminate the agreement.
On the other hand, the franchisee can only terminate the Big O Tires agreement if Big O Tires has committed a material breach of its obligations and fails to correct the breach within 30 days after the franchisee provides written notice.
Additionally, Big O Tires has the right to terminate the agreement if a force majeure event occurs and continues for 15 consecutive months or longer, preventing either party from fulfilling their obligations. These events include strikes, acts of God, civil disturbances, compliance with unforeseen governmental regulations, or any other fault beyond their control.