Big O Tires

The franchise fee of $17,500 is significantly lower than the typical range of $25,000-$49,500 for automotive franchises. What accounts for this lower entry cost, and are there any additional upfront costs not reflected in the disclosed franchise fee?

Your royalty rate of 5.0% is below the typical 5.38%-7.5% range for this category. How does this lower rate correlate with the support and services provided, and could it increase in the future?

Unit closures have increased substantially from 4 in 2023 to 9 in 2025. What is driving this acceleration in closures, and what market conditions or operational issues are franchisees facing?

Transfer rates have declined dramatically from 44 in 2023 to 19 in 2025. Does this declining transfer rate indicate reduced buyer interest in acquiring existing Big O franchises, and what does this suggest about franchise unit value?

What were the specific claims and outcomes in the 3 litigation cases filed against the franchisor? Are there any unresolved systemic issues related to these disputes?

Your average gross sales of $2,824,713 significantly exceed the typical range for automotive franchises. What is the distribution of these sales across your unit base—are some units dramatically underperforming this average?

The franchise disclosure requires maintaining a minimum inventory of 700 tire units with the majority being Big O brand. What is the capital requirement and cash flow impact of this inventory requirement, and how often must inventory be refreshed?

Late payments accrue interest at 18% per annum. How frequently do franchisees fall behind on payments, and what triggers franchisor enforcement actions that lead to the 0.87% annual termination rate?

Renewal is subject to 8 conditions including refurbishing premises to current standards and executing a successor agreement. Can you provide specific examples of what 'refurbishing to current standards' entails and the typical cost?

The agreement requires purchases from Big O or approved sources only. How many approved alternative suppliers exist for key product categories, and can franchisees negotiate pricing with Big O or approved vendors?

What is the breakdown of the 4-6 annual terminations by reason (non-performance, breach, financial default, other)? How many were contested by franchisees?

Given the non-compete of 2 years and 10 miles, how enforceable has this proven in your litigation history, and have there been challenges to this restriction?

Can you provide the financial performance data showing profit margins and return on investment for a typical performing unit compared to the average gross sales figure?

What support and training mechanisms justify the 100/100 Support & Training score, especially given the increasing closure rate and declining transfers?

Are there geographic or demographic patterns to the closures and terminations? Are certain regions or market types experiencing higher exit rates?

The spouse liability clause makes spouses liable for all financial obligations. How does this impact franchisee recruitment, and have there been issues with spouses challenging these obligations in litigation?

What specific encroachment protections exist to prevent Big O from opening company-operated locations near franchised units, given that territory is not exclusively assigned?

How many units have been sold or transferred by Big O to other franchisees or company operations since the franchise program began, and what impact has this had on neighboring franchise territories?