Big O Tires is a tire retailer offering tire sales and automotive services, including oil changes and brake repairs. The franchise provides quality tire products and maintenance services.
Key Insights
- Established with a vision for accessible automotive care, Big O Tires has grown into a national network of tire and service centers, built on a foundation of customer trust and dependable vehicle maintenance expertise. The business focuses on providing a comprehensive range of tire products and essential automotive services.
- Operating through a franchise model, the business empowers entrepreneurs to own and manage their own tire and service locations. This model provides established brand recognition, operational support, and access to a wide array of products and supplier relationships.
- Big O Tires operates within the automotive aftermarket services industry, a sector characterized by consistent demand for vehicle maintenance, repair, and tire replacement. This industry serves a broad customer base requiring ongoing vehicle upkeep.
Franchise Fee and Costs to Open
Exploring the financial picture of Big O Tires gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $511,500 - $1,882,500, along with a franchise fee of $10,000 - $17,500.
Financial Performance and Revenue
Yearly gross sales of $2,714,681 and estimated earnings of $244,322 - $325,762 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 4.7-6.7 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Big O Tires provides comprehensive initial training. This program offers in-depth instruction over two weeks, held at their corporate headquarters. The franchisor provides extensive operational and marketing resources, including best practice guides. Big O Tires offers ongoing support, recommending regular engagement with their field consultants. These resources are designed to assist new franchisees as they launch and grow their Big O Tires business.
Legal Considerations
Legal considerations for a Big O Tires franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
Franchisees might encounter challenges related to local market competition from established dealerships and independent shops. The operational complexity of managing a full-service automotive and boat center, including skilled labor and diverse inventory, requires careful attention. Additionally, reliance on specific supply chains for parts and accessories can impact turnaround times and customer satisfaction if disruptions occur.
Franchise Datasheet
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