factual

Can Big O Tires use unaffiliated manufacturers to produce private label tires?

Big_O_Tires Franchise · 2025 FDD

Answer from 2025 FDD Document

Tires. We sell lines of private label tires to Big O Tire Stores. These private label tires may be manufactured by Sumitomo Corporation, which holds a partial indirect ownership interest in us, or unaffiliated manufacturers. We may look to other manufacturers to produce tire products in the future. We do not manufacture tires. Most products are delivered to franchisees from the RDC servicing their area at a minimum of twice weekly. We commit to supply you with the Big O branded tire lines but we do not guarantee to supply you with any specific numbers or sizes of tires or with any other specific tire brands. However, we do have a fill rate policy which is described in Item 6, Note 2.

We are the only approved supplier of Big O private brand tires and other private brand products which are manufactured exclusively for us or TBC. We may add or change private brands of tires and other products periodically.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 39–44)

What This Means (2025 FDD)

According to Big O Tires's 2025 Franchise Disclosure Document, Big O Tires sells lines of private label tires that may be manufactured by Sumitomo Corporation, which holds a partial indirect ownership interest in Big O Tires, or by unaffiliated manufacturers. The document states that Big O Tires may consider other manufacturers for tire production in the future, but they do not manufacture tires themselves.

Big O Tires is identified as the only approved supplier of Big O private brand tires and other private brand products made exclusively for them or TBC. While Big O Tires may add or change private brands of tires and other products, franchisees must purchase Big O trademarked tires and other brands from the Regional Distribution Center (RDC) in their area or, with approval, from other RDCs. Franchisees can also purchase other tire lines through the RDC or from any other approved source.

This means that while Big O Tires uses both affiliated and unaffiliated manufacturers for its private label tires, franchisees are required to purchase these tires from approved sources, primarily the RDC, ensuring quality control and brand consistency. A potential franchisee does have the option to request approval for alternative suppliers, but there is a process to follow and no guarantee of approval.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.