Big O Tires Franchise Cost, Revenue & Review 2026
- Investment
- $512K – $1.9M
- Disclosed sales
- $2.8M
- gross sales, not profit
- SBA charge-off
- 14.5%
- on 352 loans
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
Big O Tires is an automotive franchise selling tires and providing installation, alignment, and general repair and maintenance. Franchisees run tire-and-service centers managing retail sales, service bays, technicians, and inventory.
FranchiseVerdict summary · 2026
A Big O Tires franchise requires a total initial investment of $512K – $1.9M, including a $18K franchise fee and an ongoing 5.0% royalty[2]. Per the 2025 FDD, average unit revenue was $2.8M[2]. SBA 7(a) loans show a 14.5% charge-off rate across 352 loans[1]. FranchiseVerdict grade: B (Above average), an editorial assessment, not investment advice. Run a live ROI scan →
Sources, dates and evidence
FDD issued: · Data extracted: · Last cited check: · Staleness risk: medium - issued 12 to 24 months ago; a newer filing is likely on file
Evidence: strong✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✓ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored6 of 7 headline figures on this page cite a page of the filing; the rest are marked “Not cited” beside the figure.
Overview
- Investment
- $512K – $1.9M
- 48th pct Automotive
- Avg gross sales
- $2.8M
- 20th pct Automotive
- Royalty
- 5.0%
- 10th pct Automotive
- Units
- 461
- 46th pct Automotive
- SBA charge-off
- 14.5%
- % of SBA 7(a) loans not repaid · median varies by category
Quick verdict · Automotive · color = vs category peers
Green = favorable by >10% vs Automotive median · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $512K – $1.9M including a $18K franchise fee, 5.0% ongoing royalty.
- RETURNSAverage unit revenue of $2.8M/year. Note: this is gross profit, not take-home income.
- RISKVerdict B (Above average), verdict score 64/100 (higher is better). SBA loan charge-off rate of 14.5% across 352 loans (above the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2025).
- GROWTHNegative: net -1 franchised outlets in the latest year (8 opened, 9 closed); 13 signed but not yet open (Item 20).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- Big O Tires, LLC
- Parent company
- TBC Shared Services, LLC
- FDD Item 1, page 9 of the 2025 FDD
- Ultimate parent
- TBC Holdings, LLC
- FDD Item 1, page 9 of the 2025 FDD
- Predecessor
- Big O Tire Dealers, Inc.
- Prior franchisor entity
- CEO title
- Chief Executive Officer
- Don Byrd
- Incorporated in
- NV
- HQ
- 4260 Design Center Drive, Palm Beach Gardens, Florida 33410
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
- Franchisor revenue
- $3.0B
- vs $3.2B prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Overview
About
- CEO
- Don Byrd
- Headquarters
- FL
- Founded
- 1982
- FDD year
- 2025
- States available
- 24
Can you afford it, and what does the money buy?
Entry cost runs 225% above the typical automotive franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee/Minimum Deposit | $10K | $18K | |
| Initial Training - Fees, Travel & Lodging Expensesnot refundable | $1K | $9K | |
| Real Estate Leases (Three Months' Rent Plus Security Deposit) | $40K | $160K | |
| Equipment, Fixtures and Other Fixed Assetsnot refundable | $250K | $395K | |
| Construction, Remodeling, Leasehold Improvements and Decorating Costsnot refundable | $25K | $750K | |
| Signsnot refundable | $15K | $75K | |
| Grand Opening Advertisingnot refundable | $10K | $50K | |
| Initial Inventorynot refundable | $75K | $188K | |
| Insurance and Other Security (3 months)not refundable | $10K | $20K | |
| Computer Hardware and Softwarenot refundable | $21K | $34K | |
| Non-recurring Pre-opening Costsnot refundable | $5K | $35K | |
| Additional Funds (up to 12 months)not refundable | $50K | $150K | |
| Total initial investment | $512K | $1.9M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $512K – $1.9M
- Middle of category vs category
- Liquid capital req'd
- $50K – $150K
- Top 40% of category vs category
- Franchise fee
- $18K – $18K
- Top 40% of category vs category
- Royalty
- 5.0%
- Tiered by sales volume · typical 6–8%
- Ad fund
- 0.9%
- typical 3–5%
- Total fee load
- 4.4%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 5.0% of gross sales |
| Marketing / ad fund | 0.9% |
| Technology fee | $304 |
| Training fee | $1K |
| Transfer fee | $5K |
| Inventory (initial) | $75K – $188K |
| Total fee load | 4.4% of rev |
A 4.4% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 175% above the automotive norm.
Source: FDD 2025 · Item 19
Single-unit · not modelled
Returns at a glance
An FDD discloses gross sales, not profit, and the operating costs that turn one into the other are in no filing. We publish no modelled return for Big O Tires until someone supplies them — yours, in the models below.
—
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
Total invested capital · disclosed
$1.3M
Item 7 initial investment plus working capital, as filed — the one figure here that needs no assumption.
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit, read against the 30–60% reference band · Yale SOM, Post-MBA Path Exhibit 2 (2023). Below that band a passive index fund likely outperforms; above it the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses, and it is the top line only — gross sales are not profit. No FDD discloses the operating costs that turn one into the other, so those fields start empty and nothing is modelled until you supply them from your own lease quote, labor market and build-out budget.
Returns model · single-unit ROIC
What would one Big O Tires unit return on the cash you put in?
Illustrative category typicals — not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Unlevered ROIC · per unit
Your modelled return on total invested capital, before any debt financing.
—
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Not modelled yet
An FDD discloses gross sales, not profit. We hold no sourced figure for COGS, labour, rent / occupancy and other operating costs, and will not substitute an assumed one. Enter your own and the model runs on your assumptions.
A 25-unit return is built on a per-unit EBITDA. Fill in the operating costs in Model A above and this model runs on that figure, or take the whole scenario to the full ROI workbench, where the portfolio and LBO models accept your own per-unit economics directly.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $2.8M
- Per unit, per year
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross revenues and cost analysis
- Sample size
- 457 outlets
- vs category median 70 · large
- Range (low → high)
- $748K→$10.2MNot cited — published from our reading of the franchisor's disclosure document; the page it is printed on has not been located.
- Cohort dispersion (min → max)
- Quartile band
- $1.4M→$4.7M
- Bottom 25% → top 25%
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 9 / 10
- vs category median 4 / 10 · above
Compared against 167 Automotive brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $2.8M/year in gross sales. Revenue-to-investment ratio: 2.4x.
Fee burden
Total ongoing fee load of 4.4% — below the Automotive median of 8.0%.
Disclosure
Transparency score 9/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System roughly stable (+0.2% 3-year CAGR) with 461 units.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Automotive medians
How Big O Tires Compares
Category median of published Automotive brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 461
- Opened
- 8
- Last reporting year
- Closed
- 9
- Terminated
- 4
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 2
- Term expired, not renewed (per Item 20)
- Turnover rate
- 2.0%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- -0.2%
- Net unit change over 3 years
- 3-yr CAGR
- +0.2%
- Compounded over last 3 years
Last fiscal year · Item 20 exits and transfers
- Terminated
- 4
- Not renewed
- 2
- Signed, not yet open
- 13
- 0.03 per open outlet · Item 20 Table 5
- Projected new
- 13
- Franchisor's next-year forecast
- Transfer rate
- 0.2%
- Owners selling to other franchisees
- Ceased ops
- 0.2%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
Where the owners are · Item 20 owner list
17 current owners across 13 states.
- AZ 3
- CO 2
- UT 2
- CA 1
- GA 1
- ID 1
- IN 1
- MO 1
- NE 1
- NM 1
- OK 1
- TX 1
- +1 more states
Counts only, from the list the franchisor prints in Item 20; 469 entries carry no state. Names and phone numbers are for your own due diligence and are not shown here.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 352
- Loan volume
- $222.9M
- Median loan
- $378K
- 50th percentile
- Charge-off rate
- 14.5%
- on 352 loans · rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 85.5%
- 5-yr charge-off
- 0.0%
- Loans approved 2021+
- Active lenders
- 72
- Defaults
- 42
- Typical loan rate
- 6.3%
- avg rate to borrowers
- Franchised industry avg
- 14.0%
- brand above franchise avg ↑
- Jobs supported
- 3,038
- 1.4 per loan
- Lender concentration
- 30%
- top lender's share
Borrower mix: 27% went to startups / new businesses, 73% to established operators
Franchise vs independent — in tire dealers, franchised businesses charge off at 14.0% vs 16.4% for independents — franchising is associated with 15% lower SBA default risk in this category.
Vintage analysis
Big O Tires charge-off rate by loan vintage
Top lenders financing Big O Tires franchisees
Showing 3 of 72 lenders. The full breakdown — every lender, state distribution, interest rates & risk ratings — is in the SBA Lending Report below.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Lender network · 7(a) + 504
SBA Lending Report
Full lending analysis for Big O Tires from SBA 7(a) FOIA data.
- Principal loss rate
- 4.5%
- Avg SBA guarantee
- 74%
- Avg interest rate
- 6.33%
- Avg chargeoff amount
- $237K
- Lender concentration
- 30.4%
- Job velocity
- 1.4 per $100K
- Startup risk premium
- 0.0pp
- NAICS benchmark
- 13.1%
- NAICS 441320
- Jobs supported
- 3,038
Top SBA lendersTop lender holds 30% of loans
| # | Lender | Loans | Volume | Default % |
|---|---|---|---|---|
| 1 | Wells Fargo Bank National Association | 107 | $51.0M | 17.5% |
| 2 | Live Oak Banking Company | 36 | $51.7M | 0.0% |
| 3 | Readycap Lending, LLC | 27 | $24.0M | 29.6% |
| 4 | Wachovia SBA Lending, Inc. | 17 | $11.9M | 0.0% |
| 5 | Zions Bank, A Division of | 12 | $8.8M | 22.2% |
| 6 | Bank of America, National Association | 11 | $1.2M | 9.1% |
| 7 | Loans from Old Closed Lenders | 8 | $2.6M | 0.0% |
| 8 | GE Capital Small Business Finance Corporation | 7 | $2.0M | 42.9% |
| 9 | JPMorgan Chase Bank, National Association | 6 | $2.1M | 0.0% |
| 10 | First-Citizens Bank & Trust Company | 6 | $3.0M | 16.7% |
Geographic failure vector
| State | Loans | Defaults | Rate |
|---|---|---|---|
| CACalifornia | 115 | 19 | 19.4% |
| AZArizona | 63 | 7 | 12.3% |
| COColorado | 58 | 5 | 10.2% |
| UTUtah | 29 | 1 | 5.0% |
| INIndiana | 13 | 2 | 40.0% |
| NMNew Mexico | 13 | 1 | 11.1% |
| NVNevada | 11 | 2 | 25.0% |
| IDIdaho | 10 | 1 | 11.1% |
| WAWashington | 9 | 0 | 0.0% |
| NENebraska | 6 | 0 | 0.0% |
SBA 7(a) lending trend
Borrower profile
Source: SBA 7(a) + 504 FOIA loan-level data, matched by FranchiseVerdict
What could kill this investment?
SBA loans here charge off near the 16.0% national average.
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
Big O Tires presents high risk due to active litigation alleging franchisor misrepresentation, declining unit count, thin profit margins, and high capital requirements that compress ROI.
Why this reads harsher than the B grade: the grade weighs financial health, unit economics, unit growth, scale, legal, and transparency across the whole filing, while this summary lists individual flags without that weighting. The flags are worth checking with current owners; neither is investment advice.
Litigation (Item 3)
Subject: the franchisor is a named party (defendant).
3 prior actions disclosed: (1) Fratilla v. Big O Tires class action re tire protection program; settled $2.05M. (2) TBC Retail Group Wage and Hour Cases JCCP 4701; settled $1.84M. (3) Black Donuts et al. franchisee fraud/breach claims; settled with nominal payment. Also 1 administrative action (People of CA v. Big O Tires re advertising, $25K penalty, permanent injunction).
Largest disclosed settlement: $2,050,000
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Consolidated net revenues of TBC Holdings, LLC and subsidiaries (a joint venture of Michelin North America, Inc. and Sumitomo Corporation of Americas), the parent. FY ended March 31, 2025 ($2,951,647K) and 2024 ($3,181,848K), USD in thousands, audited by PwC. These are the consolidated parent figures, not standalone Big O Tires, LLC franchisor revenue. Item 8 states the franchisor's own total revenue as $385,060,332 (FY ending 2025-03-31); the statements above are the parent's.
ⓘ These are the parent company's consolidated financials (the parent guarantees the franchisor), not this brand's standalone results — the figure reflects the whole corporate group, not this brand alone.
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: Yes
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 64 / 100 verdict
- 01HIGHActive multi-front litigation including franchisee misrepresentation claims that directly undermine trust in franchisor disclosures
- 02MINORUnit count declining (-0.2% YoY) despite 461-unit system size, indicating market saturation or franchisee attrition
- 03MINORNet profit margin of only 9.2% ($258,878 on $2.8M avg revenue) leaves minimal buffer for royalty payments (3.5-5%), labor costs, and unexpected expenses
- 04MINORThree separate class action lawsuits (tire protection program, wage/hour violations at company stores, and franchisee false representations) suggest systemic operational or disclosure issues
- 05MINORHigh initial investment range ($511.5K-$1.88M) combined with thin margins creates extended payback period and capital recovery risk
Severity inferred from the FDD text · not a regulatory classification
Litigation case detail4 matters · Item 3
Litigation cases
The franchisor
Concluded (4)
TBC Retail Group Wage and Hour Cases
settledThird-party plaintiff · filed 2012 · California Superior Court (coordinated proceeding; components were filed in Los Angeles County and Orange County) · JCCP Case No. 4701
“This action coordinated two class actions that were pending in two different California Superior Courts on February 10, 2012. This action coordinated Paul Quintana, as an Individual and on Behalf Of All Similarly Situated Employees v. Big O Tires, LLC, Case No. BC451272, Superior Court of California for the County of Los Angeles”Page 13 of the 2025 FDD, Item 3
Outcome:“Parties in both the Goegan and Quintana actions settled in 2018, with Big O agreeing to pay a total of $1.84 million, and the final order approving settlement was issued in March 2019. Black”
Black Donuts, Inc., Jan W. Talbot, Jeff Magna; T&T Pasadena, Inc., T&T Thousand Oaks, Inc., T&T Glendora, Inc., Tareq Nasrallah, Tony Nasrallah, G&G 2000, Inc., Jerry Riccio, Greg Minshell, Manzano, Inc., Kevin Raach, Chula Vista Tire, Inc., Jeff Yasukochi, Big Red Tire, Inc., James Park, Felix Bros
settledBrought by a franchisee · filed 2009 · Superior Court of California for the County of Los Angeles · BC427136
“Plaintiffs, both current and former franchisees of ours, filed the initial Complaint in December 2009. Plaintiffs alleged that Big O made false statements and representations and withheld information that the Plaintiffs alleged was important in connection with their purchase of their Big O franchise. Plaintiffs initially claimed”Page 13 of the 2025 FDD, Item 3
Outcome:“The parties settled with a nominal payment from Big O. Big O maintained counterclaims against several of the remaining plaintiffs, which resulted in the gross amount of $42,500 from such plaintiffs to” (page 14)
People of the State of California v. Big O Tires, Inc., et al.
judgmentGovernment or regulatory action · filed 1993 · San Diego County Superior Court in California · Civil Action No. 671161
“were the subject of an investigation regarding the advertising of store products and services by the Office of the City Attorney of San Diego. We cooperated with the California authorities in reviewing and assessing allegations as to whether violations of California law that regulate advertising had occurred, and in November 199”Page 14 of the 2025 FDD, Item 3
Outcome:“As part of the Stipulation, the San Diego Target Franchisees and we agreed to pay certain costs and civil penalties totaling $35,000. Our portion totaled $25,000. Actions Filed Aga”
Fratilla, Brian Jeffrey v. Big O Tires, LLC
settledThird-party plaintiff · Superior Court of California, San Diego County · 37-2013-00028542-CU-BT-CTL
“A purported class action lawsuit was filed on behalf of customers of Big O alleging that Big O’s former tire protection program (“Former TPP”) is actually an insurance contract under California law which required Big O to register as an insurer, comply with various formatting requirements and disclosures, and notify consumers th”Page 13 of the 2025 FDD, Item 3
Outcome:“The parties reached a settlement under which Big O agreed to pay $2.05 million in total, which the Court has approved by order dated August 24, 2018. TBC Retail”
Item 3 lists the litigation the franchisor must disclose; a matter against a parent, an affiliate or a named officer is not a matter against the franchisor, and pending claims are allegations, not findings.
What are you signing up for?
Ongoing fees run about 4.4% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 10 years |
| Allowed renewalsℹ | 1 |
| Territory type | Protected territory |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory radius | 2 mi |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Curable defaultsℹ | 6 |
| Mandatory arbitration | Yes |
| Arbitration location | Denver, Colorado |
| Jury trial waiver | Yes |
| Governing law | CO |
| Litigation count | 4 |
View Item 3 litigation summary
3 prior actions disclosed: (1) Fratilla v. Big O Tires class action re tire protection program; settled $2.05M. (2) TBC Retail Group Wage and Hour Cases JCCP 4701; settled $1.84M. (3) Black Donuts et al. franchisee fraud/breach claims; settled with nominal payment. Also 1 administrative action (People of CA v. Big O Tires re advertising, $25K penalty, permanent injunction).
Items 10, 11
Training & Operations
- Classroom training
- 73 hrs
- On-the-job training
- 200 hrs
- Training location
- Palm Beach Gardens, Florida or online virtual classroom; field training at a Big O Store
- Ongoing training
- Required
- Time to open
- 3 mo
- From signing to launch
- Site selection
- Franchisee with franchisor approval
- Franchisor financing
- Offered
- Item 10
- POS system
- BOT POS System (Navex / transitioning to Tekmetric)
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: BOT POS System (Navex / transitioning to Tekmetric)
Item 20 · call current owners
Franchisee Contacts
486 owners to call
Name · phone · city · state. Extracted from FDD Item 20
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Big O Tires franchise?
The total investment to open a Big O Tires franchise ranges from $512K – $1.9M, with an initial franchise fee of $18K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Big O Tires franchise owners earn?
According to Item 19 of the Big O Tires FDD, the average gross sales per unit is $2.8M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
Who owns Big O Tires?
Big O Tires is franchised by Big O Tires, LLC. Its parent company is TBC Shared Services, LLC. The ultimate parent named in the FDD is TBC Holdings, LLC. Source: FDD Item 1, 2025 filing.
What is Item 19 in the Big O Tires FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Big O Tires FDD and qualifies whose outlets they describe.
What is Big O Tires's franchise failure rate?
Based on SBA 7(a) loan data, Big O Tires has a charge-off rate of 14.5% across 352 loans, meaning 14.5% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Big O Tires franchise locations are there?
As of their most recent FDD filing, Big O Tires has 461 total units in the United States, including 461 franchised units and 0 company-owned units. 8 new units were opened in the latest reporting year.
Is Big O Tires a good franchise to buy?
FranchiseVerdict rates Big O Tires as a B-grade franchise with a verdict score of 64 out of 100 (higher is better). The grade is a deterministic score built from six weighted dimensions — financial health, unit economics, unit growth, scale, legal, and transparency — then calibrated against SBA loan charge-off rates and FDD age. Transparency is one of the six, so a filing that discloses less scores lower on that dimension than one that discloses more. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.