Big O
Big O Tires offers retail tire sales and automotive services through franchised locations. Known for comprehensive tire solutions, it operates in the competitive tire retailing industry.
Big O franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Big O Tires franchise ranges from $543,500 to $2,738,000 [p.1]. This includes between $417,000 and $2,451,500 that must be paid to the franchisor or its affiliates.
What is the initial franchise fee?
The initial franchise fee is $17,500 and it is due in two installments: $10,000 when submitting the franchise application and signing a Franchise Deposit Receipt Agreement, and $7,500 upon signing the Franchise Agreement before commencing training. [p.14]
What are the ongoing royalty and advertising fees?
Ongoing royalty fees typically range between 3.5% and 5% of franchisees' adjusted gross sales [p.330]. National advertising fund contributions, reported as part of royalty revenues, are also an ongoing fee [p.330].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is 10 to 20 years, with the ability to renew for an additional 10 to 20 years, subject to certain conditions [p.330]. Renewal is possible by signing a then-current form of Franchise Agreement ('Successor Franchise Agreement') for a term of 10 years, though this term can be shorter if you are unable to extend your lease or sublease [p.14].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, a franchisor can refuse to permit the transfer of ownership of a franchise except for good cause [p.5]. Good cause includes but is not limited to unspecified factors [p.5]. Therefore, you cannot freely sell or transfer your franchise without the franchisor's approval, which may be granted or denied based on their discretion and the reasons provided [p.358].
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the franchise agreement if the franchisee fails to comply with any lawful provision of the franchise agreement and does not cure such failure after being given written notice and a reasonable opportunity, which cannot exceed 30 days. [p.442] Additionally, this may be limited or superseded by RCW 19.100.180(1), requiring good faith dealings between the parties. [p.442]
What financial requirements — net worth and liquid capital — do I need to qualify?
To qualify as a franchisee, you generally need a net worth of at least $300,000 along with liquid assets of $100,000 or more. However, for high-cost real estate projects (with anticipated lease payments of $40,000 per month or more or purchased real estate costing $4,500,000 or more), the requirements increase to a net worth of $500,000 and liquid assets of $150,000. [p.39]
Do I get an exclusive or protected territory?
Based on the excerpts provided, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that Big O owns, or from other channels of distribution or competitive brands that Big O controls [p.73]. Additionally, while Big O offers assistance in site selection and may protect a market area for 12 months if you opt to develop an additional store, this does not guarantee exclusivity [p.74].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial online learning management system access before store opening. Initial training includes approximately one or two days of online training, one and a half weeks of facilitated training, and three and a half weeks of required field training, conducted at Big O stores designated by the franchisor. Optional field training is also available without additional cost. The franchisor conducts this training as needed, typically once a month, covering both front office and back room skills. Additionally, shared information from franchisees' operations is collected to provide customer relationship management, warranty support, national and local marketing services, and other related analyses [p.70, p.265].
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2025, there were 465 total operating franchised outlets in the U.S. [p.87]. Nine stores closed during 2025, but it is not specified whether these were among the 465 operating outlets or if they are included in the total count of 470 franchised outlets mentioned earlier. [p.90] This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor, Big O Tires, LLC, shares historic financial performance representations based on actual data from existing stores. These include average annual gross revenues and total income, gross profit, and net income for recent years [p.89, p.145]. However, the franchisor does not make any future financial performance projections or allow its employees or representatives to do so orally or in writing [p.89]. This isn't specified in the excerpts for ongoing earnings sharing beyond these representations.
What am I restricted to selling, and where must I buy supplies?
You are required to comply with Big O's standards and specifications for all products and items used in or sold through your store, which means you must purchase or lease these from Big O or approved sources [p.40]. Additionally, you may not wholesale Big O Program Products purchased from Big O for resale, except under certain conditions as set by the franchisor [p.79].