This is a great option of Big O Tires franchisee, In this post, You will get big o tires franchise for sale | Cost, Fee, Opportunity All information to start your Big O Tire Franchise. If you are looking for an open new store, or convert your exciting store, or explore possibilities for taking ownership.
Big O Tire is created by a group which are progressive independent tire dealers who worked together to meet the demands of an exploding automobile service market. Big O Tire foundation is given to member for the strategy and resources necessary to stay ahead in changing vehicle population, and build up to long term success for this brand
The franchise is offering franchisors for the operation of retails stores selling, servicing tire and related automotive product in the market.
#1. Big O Tire Franchise Opportunities
Big o Tire franchise provide two business models Big O Tire Franchise Opportunities:
- Product Distribution Franchise
- Business Format Franchise
Big O Tire is proud to be a world-class leader in the automotive industry, and they are ever-expanding their market in the automotive industry. They gives Opportunity for part of member of Big O Tire family.
Also, they provide many Support to the franchisor:
- Site selection/ Development
- Training Support
- Store merchandising
- Inventory management
- Recommended retail pricing/model stock program
- Five-step VIP Service approach to customer retention
- A franchise business consultant
- Credit card program
- Market intelligence
- IT – computers, software, email
#2. Big O Tires Franchise Cost
To become family member of Big O Tire franchise Cost is follow by bellow:
1. Initial investments: $260,200 – $1,137,428
2. Net-worth Requirement: $300,000
3. Liquid Cash Requirement: $100,000
- Investment Cost:
| Estimated Investment cost | ||
| Name of Fee | Low | High |
| Initial Franchise Fee | $0 | $30,000 |
| Initial Training – Fees, Travel & Lodging Expenses | $1,000 | $7,800 |
| Real Estate Leases Cost (One to Three Months’ Rent Plus Security Deposit) | $24,000 | $68,000 |
| Equipment, Fixtures and Other Fixed Assets Cost | $100,000 | $235,000 |
| Construction, Remodeling, Leasehold improvements and Decorating Costs | $25,000 | $350,000 |
| Signs Cost | $10,000 | $50,000 |
| Grand Opening Advertising Cost | $10,000 | $50,000 |
| Initial Inventory Fee | $55,000 | $125,000 |
| Insurance and Other Security Cost (3 months) | $3,000 | $5,500 |
| Computer Hardware and Software Cost | $18,000 | $27,000 |
| Non-Recurring Pre-opening Costs | $5,000 | $35,000 |
| Additional Funds (up to 12 months) | $50,000 | $150,000 |
| ESTIMATED TOTAL* | $311,000 | $1,133,300 |
- Other fee:
| Type of Fee | Amount |
| Royalty (Product Distribution Franchises) | 2% of each month’s Gross Sales. |
| “Local Fund” for advertising and related expenditures | A minimum of 4% of each month’s Gross Sales, subject to increases or reductions in certain cases (currently reduced to a minimum of 3.6% based on certain marketing programs). |
| National Marketing Fee | Currently set 0.9% of each month’s Gross Sales (raised from the amount of 0.25% while certain marketing programs are in effect). |
| National Auto Service Warranty and Roadside Assistance Plan | Currently $75 per store, per month, but can be changed by vendor. |
| Tire Protection Plan Service Contract Administration Fee (TPP Fee) | $.60 per tire. |
| Consumer Liability Insurance Policy Fee (CLIP Fee) | $.22 per tire. |
| Point of Purchase Packages | Not more than $1,500 per year, as adjusted each year in accordance with Big O policies. |
| Market Reservation Fee | Will vary by circumstances, but generally will be in the range of $2,500 to $6,000. |
| Retail Accounting Centres (RAC) | Varies based on services provided, but not less than $200 per month. |
| National Fleet Accounts Administrative Fees | Varies, currently up to 15% of Gross Sales to certain National Fleet Account Customers |
| AMRA Motorist Assurance Program Fees and Dues | Currently $1.00 per year, but subject to change. |
| Transfer Fees | $5,000 upon a transfer involving an assignment of the Franchise Agreement or a change in control. If the transfer does not involve an assignment of the Franchise Agreement or a change in control, the transfer fee is equal to Big O’s expenses relating to the transfer up to $1,500. |
| Insurance Administrative Surcharge | 10% of cost of insurance. |
| Interest on Late Payments | Lesser of 18% per annum or maximum rate of interest allowed by law. |
| Successor Franchise Administration Fee | Varies. |
| Real Estate Rental and Fees | Payable to the franchisor if it owns or lease the store location and it leases, subleases or assign it to the franchisee. |
| Training Fees | Will vary. |
| Training Fees (TBC University) | No charge during the first partial year until the next March 31; charges may apply in future years. |
| National Convention Registration Fee | Varies depending on location and cost of the national convention. The most recent national convention fee was $325 per adult. Occasionally such fees have been waived for early registration or in conjunction with meeting certain sales targets. |
| Resale Fee | $5,000 |
| Products and Services | Will vary. |
| DST End User Software License Agreement Fees | Amount per store: |
| 1. One-time Fees: | |
| a. License fee: $1,000 | |
| b. Installation fee: $1,500 | |
| c. Conversion fee: $500 | |
| d. Store Training and On-Site Go-Live Support Fees: $5,500-$6,500 (for 5 days of training that also covers typical travel, lodging and meals expenses) | |
| 2. Monthly Maintenance and Support: $219 per month, which may be raised in accordance with the DST End User Software License Agreement. | |
| QuickBooks Accounting Integration Fees | |
| a. QuickBooks License – Premier Accountant Edition – $500 | |
| b. QuickBooks License – Enterprise Edition – $1,500 per year | |
| c. QuickBooks Training – $1,300 | |
| d. QuickBooks Setup on Store Server – $150 | |
| e. QuickBooks Support during Integration – $1,000 | |
| f. QuickBooks Creating Beginning Balances – $850 | |
| Fees for Miscellaneous Assistance | Will vary. |
| Indemnification | Will vary under circumstances. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
| Audit fees | Will vary under circumstances. |
| Bond | Varies; actual amount determined by the franchisee’s Local Group. |
| Rebill Charge | Currently 0.69% to 19.9% of the price of the tires purchased (or up to 36.64% for trailer tires), subject to change. |
| Interest | The franchisor may charge the franchisee interest on various loans or other advances. |
| Product Transfer Payment and Administrative Fee | Product Transfer Payment: The difference between the price paid by a BFF Store and the price that would have been paid by a PDF Store; |
| Administrative Fee: $500 per occurrence of incorrect reporting of a product transfer | |
| Regional Funding Plan Fee | Varies, currently in the range of $0.10 to $1.65 per tire, depending on the RDC and the location of the purchaser |
| Manual Processing Fees | Varies, not to exceed $75 per occurrence. |
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#3. Big O Tires Franchise For Sale
To sale of Big O Tires Franchise For Sale, You should be ensuring Investment cost, Space, qualification, Etc. On the given bellow information you can get more information and start your franchise.
1.Big O Tires regions of the Availability
2.Big O Tires Franchise Info
3. Big O Tires Owner Testimonials
bigofranchise.com/research-funnel/franchisee-reviews-of-big-o-tires/
4.Big O Tires website