Under what conditions can a Big O Tires tenant assign or sublet the leased premises?

According to Big O Tires' 2025 Franchise Disclosure Document, a Big O Tires franchisee (tenant) has limited ability to assign or sublet the leased premises. Generally, the franchisee cannot sublet the premises without the landlord's consent. However, if Big O Tires assumes possession of the premises as a substitute tenant, the landlord agrees that Big O Tires, or its affiliate or successor, may sublet the premises to a new Big O Tires franchisee from time to time during the remaining lease term and options without the landlord's consent.

This clause is triggered when Big O Tires elects to take over the lease, often due to franchisee default or termination of the franchise agreement. In such cases, Big O Tires has the right to sublet the premises to a new franchisee, ensuring continued operation of a Big O Tires store at that location. This is beneficial for Big O Tires as it maintains brand presence and minimizes disruption.

For a prospective franchisee, this means they have limited control over subletting or assigning the lease. Their primary focus should be on maintaining a good relationship with both the landlord and Big O Tires to avoid circumstances where Big O Tires needs to step in and take over the lease. The franchisee should also be aware that any modifications or amendments to the lease require Big O Tires' consent, which will not be unreasonably withheld.