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- 2022 Franchise 500 Rank
#138 Ranked #205 last year
- Initial investment
$314K - $1.1M
- Units as of 2021
465 3.6% over 3 years
Here’s what you need to know if you’re interested in opening a Big O Tires franchise.
Big O Tires is one of the top-tier tire and auto services franchises in the U.S. Big O Tires holds annual national conventions that franchisees are encouraged to attend, particularly if it is the first annual convention of a franchisee's career.
Big O Tires has been around for more than half a century and franchising for close to four decades. There are over 400 Big O Tires outlets in the U.S., and it continues to be a leading business rooted in a culture of excellence. Big O Tires has the resources needed to fill gaps in a diverse, dynamic, and complex automotive world.
Why You May Want to Start a Big O Tires Franchise
Big O Tires offers two franchise models—product distribution franchises and business format franchises. The franchisor provides an initial online training and capacity-building program to provide franchisees with information about the two options so they can make an informed decision before investing.
You can experience the curriculum at the company training facilities or a virtual classroom. Field training and operations certification is provided for and conducted at a Big O Tires store.
The franchisor suggests a few days of online training followed by multiple weeks of facilitated training and another couple of weeks of field training.
What Might Make Big O Tires a Good Choice?
Big O Tires has been ranked in Entrepreneur’s Franchise 500 multiple times in the past few years. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
Big O Tires gives you the freedom to operate independently with an experienced team behind you, providing the support, resources, and training you need.
To own a Big O Tires franchise, you should make sure you're financially ready with enough capital available for an initial investment, including a franchise fee and startup fees, as well as other possible expenses. Additional expenses will include an advertising fee and royalty fee, as well as a potential renewal fee. Additionally, veterans are offered significant discount off the franchise fee by Big O Tires.
How to Open Your Own Big O Tires Franchise
As you make your decision regarding opening a Big O Tires franchise, make sure you take time to explore the opportunity. Research the brand and your local area to see if a franchise would do well in your community. While competition is healthy, too much of it may be counterproductive.
By joining Big O Tires, you are becoming part of a family with many successful franchisees. There is absolutely no automotive experience required. Prospective franchisees must go through the new franchise orientation, which is a briefing developed to help you understand Big O Tires better. The document guides you through their desired culture of creating outstanding customer interactions and other elements in their core business value that make them excel.
An assistant will guide you through the process of opening a franchise, providing insights into customer relations and service techniques. Big O Tires will teach you advanced phone skills, including an overview of product lines, setting the stage for you to open your new franchise.
About Big O Tires
- Franchising Since
- 1982 (40 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees in the following US states: Alabama, Arkansas, Arizona, California, Colorado, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Michigan, Minnesota, Missouri, Montana, North Dakota, Nebraska, New Mexico, Nevada, Ohio, Oklahoma, Oregon, South Dakota, Tennessee, Texas, Utah, Virginia, Washington, Wisconsin, Wyoming
- # of Units
- 465 (as of 2021)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Big O Tires franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $313,500 - $1,143,800
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- First-unit 50% reduction in franchise fee
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Big O Tires has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 80 hours
- Classroom Training
- 67 hours
- Additional Training
- Online training
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsGrand OpeningOnline SupportSecurity & Safety ProceduresField OperationsSite SelectionProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Co-op AdvertisingAd TemplatesNational MediaRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Franchise 500 Ranking History
Compare where Big O Tires landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Big O Tires ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse more franchises that are similar to Big O Tires.
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