conditional

Under what condition will the $35.00 fee to Big O Tires be discontinued?

Big_O_Tires Franchise · 2025 FDD

Answer from 2025 FDD Document

*In the event that the contract between Big O Tires and Licensor is terminated at any time during the term of this Agreement, upon the effective date of termination of such contract, any line items to Big O Tires will be discontinued accordingly.

Source: Item 23 — RECEIPTS (FDD pages 102–535)

What This Means (2025 FDD)

According to Big O Tires' 2025 Franchise Disclosure Document, a $35 fee is charged to Big O Tires. This fee covers $5 for third-party software and $30 for the general development fund. However, this $35 fee will be discontinued if the contract between Big O Tires and the licensor is terminated.

Specifically, the discontinuation of the fee is tied to the termination of the agreement between Big O Tires and its licensor. If this contract ends at any point during the term of the franchise agreement, the line items related to payments to Big O Tires will cease to be charged, effective from the date of termination.

This condition provides a degree of financial relief to the franchisee in the event that the relationship between Big O Tires and its licensor is severed. It is important for prospective franchisees to understand the implications of this clause, as it directly affects their ongoing expenses. Franchisees should seek clarification on the nature of the contract between Big O Tires and the licensor, including the potential circumstances under which it could be terminated, to fully assess the risk and potential impact on their business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.