Big O Tires Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$17,500
Investment required
$376,000 - $1,573,000
Royalty fee
2% to 5%

Big O Tires: Leading the Way in Comprehensive Tire and Auto Services Across America

Big O Tires, a well-known American tire retail franchise, is based in Palm Beach Gardens, Florida.

The franchise has its origins in 1962 when Harold V. James founded it. Big O Tires emerged as a spin-off from OK Tires.

This franchise is dedicated to running retail stores that offer a wide array of tire-related products and services. Their offerings include the sale and servicing of tires, as well as various automotive products. Moreover, Big O Tires provides maintenance and replacement services such as lube, oil, and filter changes, engine services, cabin air filter replacements, and brake services.

Big O Tires began franchising in 1982, establishing itself as one of the leading tire and auto service franchises in the nation. Today, it operates over 465 locations across the United States. It functions as a subsidiary of TBC Corp., alongside Midas, enhancing its stature in the automotive industry.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee/Minimum Deposit $10,000 - $17,500
Initial Training Fees, Travel & Lodging Expenses $1,000 - $9,000
Real Estate Leases (Three Months’ Rent Plus Security Deposit) $24,000 - $100,000
Equipment, fixtures and other fixed assets $135,000 - $395,000
Construction, Remodeling, Leasehold Improvements and Decorating Costs $25,000 - $500,000
Signs $10,000 - $75,000
Grand Opening Advertising $10,000 - $50,000
Initial Inventory $75,000 - $187,500
Insurance and Other Security (3 months) $10,000 - $20,000
Computer Hardware and Software $20,500 - $33,500
Non-recurring Pre-opening Costs $5,000 - $35,000
Additional Funds (up to 12 months) $50,000 - $150,000
TOTAL ESTIMATED INITIAL INVESTMENT $375,500 - $1,572,500

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Number of units

2023
Franchised units

425

434

460

Company-owned units

40

32

17

Total units

465

466

477

Franchise Disclosure Document

Training 

Initial Training:
Before launching a Big O Tires service center, franchisees must participate in the "New Franchisee Orientation." This program combines classroom instruction with hands-on experience, providing an in-depth understanding of service center operations. The duration and content of the training are designed to ensure franchisees are well-prepared for their roles. Training sessions are held at specific locations, including Palm Beach Gardens, Florida, and may also be available via an online virtual classroom.

Field Training:
In addition to classroom instruction, Big O Tires offers the "New Franchisee Orientation (Field Training)." This practical training is split into pre-classroom and post-classroom segments, with the initial 40 hours conducted before the classroom sessions and the subsequent 160 hours following them. This immersive experience gives franchisees practical insights into daily operations.

Fast Track Training:
For individuals with prior experience as franchisees or managers, Big O Tires provides a "Fast Track" program. This tailored training program addresses the specific needs of experienced participants, ensuring they receive the relevant training required.

Costs and Expenses:
Although Big O Tires covers the training, franchisees must bear all related expenses. Certain specialized training sessions, such as the multi-unit franchise management training, come with an additional fee, currently set at $550.

Territory Protection

Franchisees of Big O Tires are authorized to operate their business at a specific, designated location. However, these rights are limited to that particular location and do not include an exclusive territory.

This implies that although franchisees have a defined area for their operations, they do not possess a broader exclusive territory beyond their designated location. Their operational rights are confined strictly to the specified location.

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