Under what conditions can the Program Administrator cancel a Big O Tires Plan?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
The Program Administrator may cancel this Plan for non-payment of Plan Purchase Price by the selling dealer to the Program Administrator, or for material misrepresentation or fraud at time of sale. If the Program Administrator cancels this Plan, the Program Administrator or the selling dealer will refund you 100% of the Plan Purchase Price.
Source: Item 23 — RECEIPTS (FDD pages 102–535)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, the Program Administrator has the right to cancel a Big O Tires Plan under specific circumstances. These circumstances include non-payment of the Plan Purchase Price by the selling dealer to the Program Administrator, or if there is material misrepresentation or fraud at the time of the sale of the plan.
If the Program Administrator cancels the plan under these conditions, the franchisee is entitled to a full refund, specifically 100% of the Plan Purchase Price. This ensures that the consumer is not penalized due to issues between the selling dealer and the Program Administrator or due to fraudulent activities during the sale.
Additionally, the document outlines a "free look" period. The purchaser may return the plan within twenty (20) days of the Plan Purchase Date, provided no claim has been made. In this case, the plan is voided, and the purchaser receives a full refund of the price paid. After this initial 20-day period, if the purchaser cancels, they will receive a pro-rated refund based on the remaining months of the plan's term.