Under what conditions will the Landlord accept Big O Tires as a substitute tenant?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
. Landlord agrees to accept Big O as a substitute tenant in the event Big O elects to assume such obligation upon a default under the Lease, Franchise Agreement or other franchise agreement with the Tenant.
- As used herein, Notice of Default means written notice mailed by registered or certified mail or overnight courier specifying the Event claimed and specifically describing, in each instance of a claimed Event, the particular Event and the cure Landlord requires, such Notice of Default to be mailed to Big O at:
Big O Tires, LLC 4260 Design Center Drive Palm Beach Gardens, Florida 33410 Attention: Real Estate Department (with a copy sent to the attention of the General Counsel at the same address)
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- In the event Landlord claims that an Event has occurred and Big O elects to cure as provided herein; or in the event Big O notifies Landlord in writing that Big O is exercising its right to take over possession of the Premises, then Landlord shall accept Big O as substitute tenant under the Lease and will cooperate with Big O in turning actual, immediate possession of the Premises over to Big O. In such case, the Lease shall remain in full force and effect, but with Big O as the tenant thereunder. Big O's election, hereinabove granted, may be exercised only if Big O agrees to assume the obligations of the Tenant to Landlord under the Lease as of the date Big O or its affiliate or successor is given actual possession of the Premises.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to Big O Tires' 2025 Franchise Disclosure Document, the landlord will accept Big O Tires as a substitute tenant under specific conditions related to defaults, terminations, and Big O Tires' decision to take over the premises. The landlord agrees to accept Big O Tires as a substitute tenant if Big O Tires elects to assume the tenant's obligations following a default under the lease, the Franchise Agreement, or other franchise agreements with the tenant.
Specifically, if Big O Tires notifies the landlord in writing within 60 calendar days after the termination of the Franchise Agreement that it is exercising its right to take over possession of the premises, the landlord must accept Big O Tires as the substitute tenant. In such a case, the original lease remains in full effect, with Big O Tires stepping in as the new tenant. Big O Tires' election to become a substitute tenant is contingent upon Big O Tires agreeing to assume all of the tenant's obligations under the lease from the date they take possession of the premises.
Furthermore, the landlord is obligated to cooperate with Big O Tires in transferring immediate possession of the premises to them. If the premises or the landlord is owned in whole or in part by the tenant, Big O Tires is not required to cure any default of the tenant if Big O Tires chooses to take over the premises. In the event Big O Tires assumes possession, they have the right to sublet the premises to a new Big O Tires franchisee without needing the landlord's consent.