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Big O Tires Inc.

A franchisee is a powerful and effective process that includes the marketing, sale and distribution of products as well as services. Experience of the franchisor and the goodwill of the brand are the vital attributes of a successful franchisee. The franchisor licenses the trademarks and techniques of doing business and performs the distribution of products or services through his associated dealers.

Big O Tires Inc is auto repair center specializing in tire services. It began in 1962 and started franchising from 1962. Franchisor is a publicly-held company with 100 employee’s and10 employees in franchise department. Each Big O center offers a variety of auto repair services, including brake, alignment and front-end repair, as well as tire and ride control products. Big O Tires has centers across the United States and in Canada.

Operating as a buying cooperative, the focus was on the need to secure great products at competitive prices for each independent dealer store's retail customers, which soon evolved into Big O Tires stores franchise organization. In July 1996, Big O Tires was acquired by T.B.C. Corporation which markets automotive replacement tires though a multi-channel marketing strategy. In September 2005, TBC was purchased by Sumitomo Corporation of America, which is the largest wholly-owned subsidiary of Tokyo-based Sumitomo Corporation, one of the world's leading traders of goods and services.

Franchise Investment is the initial franchise fee is 30,000 dollars. Franchise Term is of 10 years and royalty ate is 2 percent. The investment required to open a Big O Tires store varies depending on the size and location. Their uniform franchise offering circular will provide a more detailed description of the costs involved. The total estimated initial investment ranges from 284,800 to 526,800 dollars. The purchase price for an existing Big O Tires store is negotiated between the buyer and the seller. There can be great variation based on the negotiated terms, physical differences in the facilities, market variables and perceived value of the business. Franchise 500 ranking has ranked them 107 in 2006, 77 in 2005, 60 in 2004, 47 in 2003 and 61 in 2002. Their mission is to become the number one tire retailer in North America.

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