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Franchise overview by FranRelay

BIG O TIRES

BIG O TIRES stores sell and service tires and related automotive products. Franchisees operate a retail tire and service shop serving individual drivers and, if they choose, commercial accounts.

Speak with a FranRelay consultant about BIG O TIRES, your questions, and next steps.

Investment and fees

What it costs to open and operate

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Upfront investment

Total initial investment

$543,500 – $2,738,000

USD estimate includes the fee, three months' rent, a deposit equal to one month's base rent, and pre-opening and operating funds for up to 12 months. It assumes leased premises and excludes land purchase and new building construction. Additional startup or conversion expenses may arise.

Initial franchise fee

$10,000 – $17,500

Normally counted within the total above, not added on top — confirm in the source.

Published USD fee/minimum-deposit range. Standard fee: $17,500, with $10,000 due at application and $7,500 at signing before training. Eligible programs may reduce or waive it, but a $10,000 application payment still applies; any excess credits product purchases. Limited refund exceptions apply.

Financial qualification

Liquid capital requirement

$100,000

Minimum $100,000 in cash and cash equivalents for a leased store; $150,000 if higher project standards apply.

Net worth requirement

$300,000

Minimum $300,000 for a leased store; $500,000 if higher project standards apply.

Selected fees

  • Royalty3.5% to 5% of Adjusted Gross Sales; 2% of specified sales, paid monthly

    Generally 5% of Adjusted Gross Sales through the opening calendar year. The matrix is updated annually and may change midyear; its minimum may change. Payments are reconciled to actual annual sales. Eligible incentives may temporarily reduce royalties without reducing marketing obligations.

  • Advertising contribution0.9% of prior-month Gross Sales plus $75 per store monthly for the warranty program

    The percentage includes temporary CRM and digital-program increases. Increases are limited to 0.1 percentage point per 12 months, up to 1%, unless the Franchise Advisory Council approves faster increases. The $75 warranty charge changes with vendor charges. Payments are due the following month.

  • Local marketingMinimum 3.6% of prior-month Gross Sales while specified programs operate; base minimum 4%

    Local Groups may require more; join if established in your area. Big O directs payment or approved ad spending. Approved national/key account sales and Farm Class tire prices, excluding installation/services, may use 2%. Policy-based annual cap: 4%, or the lower required Local Fund rate then in effect, times the greater of $2.7 million or twice Big O's calculated systemwide average store sales.

These are selected fees, not the complete fee schedule. Review the full FDD for all fees and conditions.

Figures are as disclosed for the period shown; unknown or undisclosed items are labelled, never shown as $0. No earnings, profit or payback figures are shown. Revenue is not profit.

Ownership and support

What owning this franchise involves

Your role

Choose who will run the tire and service shop, subject to Big O's approval and training requirements.

Owner involvement
An individual owner may serve as Operator; otherwise an approved Operator or employed Manager runs the store.
Main responsibilities
Maintain required inventory, honor customer warranties, and follow brand service standards.
Manager requirements
Operators and Managers need approval and training; an entity must designate an acceptable Manager.

Free consultation

Let's talk about BIG O TIRES.

Discuss your startup budget, who will operate the store, and the premises choices that could change your investment.

Free for buyers. Franchisors may pay FranRelay if you go ahead; we tell you before any introduction, and nothing happens without your go-ahead.

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Brand FAQs

BIG O TIRES Franchise Questions

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Disclosure document

The fees above are a short selection. Check the full FDD for all fees and terms before making a decision.

BIG O TIRES INC, Franchise Disclosure Document. not extracted; inspect cover

An introduction is not a statement that territory is available or that you will be accepted.