Big O Tires
Auto & Travel AutomotiveCompany Information
Address
4260 Design Center Drive
Website
Tel
Email
Franchimp Summary Rating
Higher than 85% of peers
Higher than 72% of peers
Franchise Summary
Description
BIG O TIRES, LLC, a Nevada limited liability company, is offering franchises for the operation of retail stores selling and servicing tires and related automotive products
Company Background
Big O Tires is the leading provider of tires and automotive services in the United States. With over 1,000 locations nationwide, Big O offers competitive prices on tires for cars, trucks, SUVs and RVs. They also provide a variety of tire-related services including tire installation and balancing along with other maintenance services like oil changes.
Franchise Opportunity
Owning and operating a Big O Tires franchise can be a very profitable business, but it is important to have all of the necessary information before making a decision. The tire industry is incredibly competitive, so it is important to do your research before investing in a franchise. There are many different franchises to choose from, so it is important to make sure you are getting the best deal. Big O Tires is the perfect choice for those looking for a proven business model with an established brand name. With over 50 years of experience, Big O Tires has become the largest independently-owned tire retailer in the United States. We offer our franchisees access to exclusive discounts on tires and products, as well as ongoing training and support.
Corporate Structure
Big O Tires, LLC, is a Nevada Limited Liability Company originally incorporated as a Nevada corporation on December 30, 1982, and subsequently converted to a limited liability company on September 28, 2007. They do business under our current organizational name Big O Tires, LLC, as well as “Big O” and “Big O Tires”, and no other name. Big O’s principal place of business is 4280 Professional Center Drive, Suite 400, Palm Beach Gardens, Florida 33410.
Royalties and Marketing Fees
Royalties : 2% of each month?s Gross Sales
Royalties : Currently set at 0.9% of each month?s Gross Sales (raised from the amount of 0.25% while certain marketing programs are in effect.)
Royalties : A minimum of 4% of each month?s Gross Sales, subject to increases or reductions in certain cases (currently reduced to a minimum of 3.6% based on certain marketing programs)
Earnings Transparency
This Franchise discloses far more about the financial performance of their franchisees compared to other franchises in the same industry.
Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet
Financial Performance of "Standard" Units
Average Revenue Per Unit
Compared vs. Automotive Industry$2,520,258 / unit
Franchise Type: Standard
Average Revenue During 2021
Franchisee Attrition
This franchise's rate of attrition in 2020
of 10.50%
was
Slightly Higher
than the 5% in the Automotive industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by
franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year.
It is a strong indicator of the strength of the underlying operating model
Franchise Types Available
| # | Type | Investment | Fees |
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Management Team
| # | Name | Position |
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Distribution of Big O Tires Franchisees
Big O Tires Franchise System Development in 2021
FAQ
How much investment do I need to start my own Big O Tires business?
Franchisees typically require at least $333 to $1 investment to get their Big O Tires business started
What are the initial franchise fees for Big O Tires?
Franchisees typically need to pay at least $95 in fees directly to Big O Tires in order to earn the right to launch their business
How much money can I make with a Big O Tires franchise? What are
the average revenues for a typical Big O Tires business?
We estimate that the average revenue of an individual
Big O Tires unit is approximately
$2,520,258. We based this on Item 19 in franchise disclosure
document
How long do I need to commit to running a Big O Tires unit? What
is my contractual commitment?
The standard length for an initial franchise contract is 10 years. Renewals are
also generally 10 years
Accessibility
The Franchisor's investment costs ranges from
$333,500 to $1,441,800
which is
Much Higher
than the $0 to $0 average in the Automotive industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc
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