Franchise Database (Updated ) | FranChimp

Big O Tires

Big O Tires, LLC

Company Information

4260 Design Center Drive

[email protected]

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.

We offer franchises, for the operation of retail stores selling and servicing tires and related automotive products, and services (“Big O Stores” or “Stores”). Big, O also sells Big O branded tires and automotive accessories to franchisees^ and Big O and its affiliates also sell or lease other items to franchisees such as real estate, equipment, signs and services. Also, Big O conducts wholesale operations under which it sells non-Big O brand tires and other automotive accessories; to Big O franchisees and to other purchasers. Big O Stores operate under the service marks “BIG D” and “BIG O TIRES” and other trademarks and trade names, service marks and other logos and symbols periodically designated by Big (collectively, “Licensed Marks”) and use our proprietary licensed methods of doing business.(‘‘Big O System”). The Stores are serviced through regional sales, and distribution centers (“RDCs”), which are owned and/or leased by us and operated by us. Big O offers franchises under' two franchise models: Product Distribution Franchises and Business Format Franchises. (The franchisees for these franchises are referred to, respectively, as “Business Format Franchisees” or “Product Distribution Franchisees”). The information in the disclosure document applies to Business Format Franchises only. Production. Distribution Franchises are offered under a separate disclosure document and under different terms. When we refer to “your franchise”, we mean your Business Format Franchise. When we refer to “your Franchise agreement or the “Franchise Agreement” or the franchise Agreements”, we mean the Business Format Franchise Agreement in Exhibit B-1 (the “BF Franchise Agreement” or “Franchise Agreement”). Before 2006, we offered only Product Distribution Franchises, except for certain Business Format test market programs in southern Nevada, which ended around April, 2006. The Big O network is in the process of transitioning from the Product Distribution Franchise model to the Business Format Franchise model. We are only offering new Big O franchisees Business, Format Franchises, but we anticipate that we will continue to have Product Distribution Franchises in our network for a significant amount of time. As of March 31, 2019, we have 418 Stores (hot including company owned stores) that operate as Business Format Franchises. Product Distribution Franchisees will be allowed the option to convert product Distribution Franchise Stores (“PDF Stores”) to Business Format Franchise Stores (“BFF Stores”) at times and under conditions prescribed by us (we refer to Product Distribution Franchisees that convert to Business' Format Franchisees as “BFF Converters”), We do not anticipate that Business Format Franchisees will be allowed.to convert BFF Stores to PDF Stores. You must operate your Big O Store according to our standards and specifications and must sign our standard BFF Franchise Agreement exhibit B-D. You will be granted the right to use Our Licensed Marks and Big O System only with the operation of your Big O Store. We Use the term “Franchised Business” to mean the business of operating a Big O store the Franchise Agreement using the Licensed Marks and the Big O System. We may grant you multi-unit rights under the terms of ah Area Development Agreement (E5chibit W) for a designated territory for multiple Big O Stores. You will be assigned to a local group (“Local Group”) Which, among other things, coordinates group or regional marketing larid advertising programs in your market, area and collects and administers fends for these programs. If a Local Group has not been formed in your geographical area^ you must, at our discretion, form a Local Group. You must comply with the decisions that the Local Group makes following procedures; and guidelines approved by us. See Item 11 for further discussion of Local Groups. We offer several programs for eligible persons to acquire franchises, including “‘Conversion Store” programs. As used in, this disclosure, document, the term “Conversion Store” means a Big O Store converted from a non Big O Store, It does not include a Store that converted from a PDF Store to a BFF Store., Also, if you are willing and able to open two, or more Stores within certain areas within a mutually agreed upon time period, you may qualify to acquire franchises at individually negotiated and maturely agreed upon timetables, discounts incentives.

7 Ongoing Lawsuits

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

5/10

Earning Transparency

10/10

Franchise Attrition

2/10

Investment Accessibility

3/10

Summary of potential earnings

Average Revenue Per Unit

$2,520,258 / unit

Average Revenue During 2021
Franchise Type:

Automotive

$535,789

Industry Low

$8,443,764

Industry High

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Distribution of Big O Tires Franchisee

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

Minimum: $95,000 Maximum: $1,186,000

Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.

These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.

While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.

Total Investment Costs

Minimum: $333,500 Maximum: $1,441,800

Ongoing Fees

Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.

These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.

Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.

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