BIG O TIRES (BUSINESS FORMAT FRANCHISE)

Item 7 in the 2025 FDD lays out a wide initial investment spectrum of $326,000 to $1,331,500, covering buildouts, inventory, and equipment for these full-service tire and repair shops. Upfront franchise fee hits $17,500, followed by tiered royalties scaling 3.5% to 5% based on a sales matrix, plus 0.9% into national marketing, and ongoing fees like $304-$340 monthly for POS plus $75 for warranty services. Item 19 shines with average gross revenue of $2,824,713 per location, but estimated profits swing wildly from a $3,628 loss to $524,253 gain—highlighting how top performers thrive on high-volume commercial accounts while underperformers struggle with slim margins in saturated markets.

SBA data underscores franchisee appeal: 141 loans averaging $921,023 with just a 2.1% default rate signals solid financing and operational viability compared to riskier concepts. Yet litigation notes in the FDD detail claims from current and former owners alleging breach of contract, fraud in inducement, and misrepresentations—factors that could erode trust in the proprietary system. Prospective buyers should drill into Item 20 for closure trends, transfers, and new openings to gauge expansion momentum, plus dissect Item 19 quartiles for realistic benchmarking against your target market's auto service demand.