Under what conditions can the Rebill Charge for Big O Tires be increased or decreased?

According to Big O Tires' 2025 Franchise Disclosure Document, the Rebill Charge, which is currently $3.00 per Rebill Tire, can be adjusted at Big O Tires' discretion. However, this adjustment is not unilateral; Big O Tires must consult with the Franchise Advisory Council before making any changes to the Rebill Charge. This process ensures that franchisee interests are considered when altering this particular fee.

For a prospective Big O Tires franchisee, this means that while the Rebill Charge is subject to change, it is not arbitrary. The consultation with the Franchise Advisory Council provides a layer of protection and ensures that changes are made with some consideration of the franchisees' perspective. The Rebill Charge applies to tires purchased under Big O's rebill program, where franchisees buy tires directly from the manufacturer or distributor, with Big O handling the invoicing.

It's important for potential franchisees to understand the role and influence of the Franchise Advisory Council. Engaging with current franchisees and understanding how the council operates can provide valuable insights into how these consultations are conducted and the extent to which franchisee concerns are addressed. Furthermore, monitoring any changes to the Rebill Charge and understanding the reasons behind those changes can help franchisees better manage their costs and profitability.

While the FDD specifies that Big O Tires will consult with the Franchise Advisory Council before changing the Rebill Charge, it does not guarantee that the council's recommendations will be followed. Therefore, franchisees should stay informed and actively participate in discussions regarding any proposed changes to the Rebill Charge to protect their interests.