How Much Does a Big O Tires Franchise Cost?
Data from the 2025 Franchise Disclosure Document
Investment Summary
Total Investment
$512K – $1.9M
Franchise Fee
$18K
Royalty
3.5%
Ad Fund
0.9%
Cost Breakdown
Initial Franchise Fee
The initial franchise fee for Big O Tires is $18K. This one-time payment covers the right to operate under the brand, access to proprietary systems, and initial training programs.
Total Investment Range
Opening a Big O Tires franchise requires a total investment of $512K – $1.9M. This range typically includes real estate or leasehold improvements, equipment and fixtures, initial inventory, signage, insurance, and working capital to sustain operations during the ramp-up period.
Working capital alone ranges from $50K to $150K.
Ongoing Costs
Beyond the initial investment, Big O Tires franchisees pay ongoing fees. The royalty fee is 3.5% of gross sales (Adjusted Gross Sales). The advertising or brand fund contribution is 0.9% of gross sales. There is also a technology fee of $304.
Net Worth & Liquid Capital Requirements
Big O Tires requires working capital of $50K – $150K to cover initial operating expenses. This is the liquid cash you should have available beyond the franchise fee and buildout costs.
What Can You Earn?
According to Big O Tires's Item 19 financial performance representation:
This figure comes from Item 19 of the FDD. Gross sales are not the same as take-home profit. After deducting royalties, ad fund fees, rent, labor, and COGS, net income is typically a fraction of gross revenue.
How Do Banks View Big O Tires?
SBA Loans Issued
352
Default Rate
14.5%
The SBA (Small Business Administration) tracks loan performance for franchise brands. Big O Tires has 352 SBA-backed loans on record. The default rate is 14.5%, which is below the franchise industry average, indicating relatively lower lending risk. A lower default rate generally indicates that lenders view the franchise as a safer investment, though past performance does not guarantee future results.
Next Steps
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