Does Big O Tires use a specific agreement for deferred maintenance, and if so, what exhibit is it?
Big_O_Tires Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT "Z"
DEFERRED MAINTENANCE AGREEMENT
In conjunction with the proposed sale of the Big O Store at agree and confirm the following to Big O Tires, LLC ("Big O"): ("Store"), from the undersigned Seller to the undersigned Buyer, Seller and Buyer acknowledge and hereby Big O (or its contractor) inspected the Store on, 20, to ascertain obvious deferred maintenance items under the Store lease or sublease; O has the right to perform the work and charge the cost to Buyer in the form of additional rent; Big O requires, as a condition of consenting to the sale of the Store, that the items listed on Exhibit A be completed and repaired by Seller or Buyer within 90 days after the closing of the sale of the Store. If the items listed on Exhibit A are not completed within 90 days after the closing of the sale of the Store, Big Big O's inspection was limited in scope and was undertaken solely to ascertain obvious deferred maintenance items and Big O makes no representation of any kind as to the condition of the Store property; Big O's inspection did not include (among other things) the roof, heating and air conditioning the environmental condition of the property; system, plumbing fixtures and lines, the Store equipment including the hoists, underground installations or The fact that something is not listed on Exhibit A does not mean that it is in good or acceptable condition for purposes of the tenant's/subtenant's obligations under the lease/sublease; This Deferred Maintenance Agreement does not limit or replace the Seller's or Buyer's obligations under the lease or sublease or the Big O Franchise Agreement; and Seller and Buyer are responsible for conducting (and advised to conduct) its/their own thorough inspection of the Store property. ACKNOWLEDGED AND AGREED: Seller: Buyer: Date:, 20 Date:, 20
Source: Item 22 — CONTRACTS (FDD page 102)
What This Means (2025 FDD)
According to the 2025 Big O Tires Franchise Disclosure Document, Big O Tires utilizes a Deferred Maintenance Agreement related to the sale of a Big O Tires store. This agreement is detailed in Exhibit Z of the FDD.
The Deferred Maintenance Agreement outlines the responsibilities of the seller and buyer regarding any deferred maintenance items identified during an inspection of the store. Big O Tires, or its contractor, conducts this inspection to ascertain obvious maintenance needs under the store's lease or sublease. The agreement stipulates that Big O Tires has the right to perform the necessary work and charge the cost to the buyer as additional rent if the identified items are not completed within 90 days after the store sale's closing.
It is important to note that Big O Tires' inspection is limited in scope and only identifies obvious deferred maintenance items. The inspection does not cover aspects such as the roof, HVAC system, plumbing, or underground installations. The agreement also clarifies that the seller and buyer are responsible for conducting their own thorough inspection of the property. This agreement does not replace the obligations of the seller or buyer under the lease, sublease, or the Big O Tires Franchise Agreement.