On average, a Big O Tires franchise generates $2,419,000 in revenue per year. Source: Franchise Disclosure Document 2022ĭownload the template How much revenue does a Big O Tires franchise make? Operating Costs: initial inventory, first 3 months’ insurance, rent, working capital, etc.Initial Marketing: grand opening advertising.Formation Costs: leasehold improvements, fixtures, equipment, training expenses, construction, remodeling, decorating expenses, computer system, signs, etc.In addition to this franchise fee, the investment also covers: You will pay $10,000 when you submit the franchise application and the rest when you sign the franchise agreement. You must pay the franchisor an initial franchise fee of $35,000. The investment covers all the startup costs you may need to start a tire shop or auto franchise. However, the actual investment amount can vary based on several factors, such as the franchise location, size, and other operational costs.Īccording to the latest Franchise Disclosure Document, the investment ranges between $333,500 $1,441,800. Note that this investment amount is higher than the average investment required for other automotive franchises, which typically ranges from $600,000 to $1,200,000. On average, the initial investment required to open a Big O Tires franchise is $888,000. How much does a Big O Tires franchise cost? Competition: The franchise faces competition from Christian Brothers Automotive, Sullivan Tire Co.Franchisees must have an office space, warehouse or retail facility. Not a home-based business: A Big O Tires franchise cannot be operated from a home or mobile unit.The franchisees must be actively involved in the daily operations of their franchises. Not a passive investment: The franchise does not present an absentee ownership opportunity.It also provides them on-site visits and continuous support from franchise business consultants. Extensive ongoing support: The brand offers its franchisees management and ongoing support to grow their franchises.Financial assistance: Big O Tires offers its franchisees financing through third-party lenders for the franchise fee, startup costs, equipment, inventory and payroll.It does not authorize any other franchise or itself to establish a competing unit in the agreed-upon area. Exclusive territory protection: The franchisor grants the franchisees the right to operate in a designated trade area.Franchisees can also choose to open a new store, convert their existing store or explore the possibility of taking ownership of an existing store, which gives them the freedom to operate according to their interests and budgets. Flexible franchise models: Big O Tires offers its franchisees two franchise models to choose from: product distribution franchises and business format franchises.It trains them on the best practices, customer service, inventory management, bookkeeping and leveraging excellent vendor relationships. Franchise training: The franchisor has a detailed online and classroom program for franchisees to learn how to establish and grow their tire centers.These include expert national marketing, regional advertising, social media and local marketing campaigns. Marketing strategies: The franchisor assists its franchisees with robust marketing and advertising techniques to help their centers grow.It also provides them with floor plan prototypes and equipment layouts for their stores. Site selection and construction: Big O Tires provides its franchisees with site selection guidance regarding population, size and dimensions, traffic flow, access and exits.Big O Tires franchises pros and cons The pros: It is a subsidiary of TBC Corp., along with Midas. The Big O Tires’s franchising journey began in 1982 and now has over 465 locations in the US. It operates retail stores, selling and servicing tires and related automotive products as well as maintenance and replacement services such as lube, oil and filter changes engine, cabin air filters and brake service. The franchise was founded in 1962 by Harold V. Download the template What is Big O Tires?īig O Tires is an American retail tire franchise headquartered in Palm Beach Gardens, Florida.
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