Big O Tires Franchise Cost, Profit & Opportunities

BIG O TIRES Franchise Startup Cost, Profit & Opportunities

Big O tires were established in 1962 by a group of independent and progressive tire store owners to create fantastic customer service.

Big O tires are headquartered at Palm Beach Gardens, Florida, North America.

Majorly into tire sales, Big O tires offer a whole lot of other services which include:

  • Brake service
  • Changing of oil and filter
  • Radiator repairs
  • Battery, taillight and headlight replacement
  • Changing of transmission fluid and so on

Big O has become a household name in tires and related services because of the hard work of its founding fathers in providing high-quality products at lower prices, polite approach to customers thereby creating a smooth relationship, honoring its social responsibilities to communities and continual improvement of procedures to maintain and grow profit.

Big O tires have been franchising since 1982. In a very short time, Big O tires became one of the largest tire franchises in North America. Today, it has over 380 branches in the United States of America. It might be a great challenge establishing an independent tire business because one may get easily squeezed out of the market the already established large brands or may make growth very difficult.

However, if you already own an independent tire business and you want to take your business to the next level and increase your share of the market; here are some reasons why you should consider converting your business into a Big O franchise:

  • Owning a Big O franchise means you have the opportunity of purchasing tires at relatively low prices. In addition to that, you can take advantage of Big O tires wide access to more products. Therefore if you are facing tough times as an independent tire dealer due to competition from other brands, converting your business to Big O tires franchise may just be your sure bet to staying competitive.
  • Converting your business to a Big O tires franchise significantly increases your customer base.
  • Having a Big O franchise adds more value to your business as Big O tires offer some other services apart from sales of tires. Such services include brakes service; battery, belt, and wiper blade replacement, changing of oil and filter, lamp replacement and many more.

Big O Tires Franchise Financial Requirements
Initial Investment

From statistics, if you are interested in owning a Big O tires franchise, you are expected to make an initial investment ranging from $259,200 to $1,181,628. This initial investment is inclusive of the initial franchise fee, initial training fees, travel and lodging expenses, real estate leases, equipment, fixtures and other fixed assets, grand opening advertising, initial inventory and many more. This is an estimate made by Big O tires based on experience. However, you need to review this estimate with a business advisor before taking a final decision.

Net worth Requirement

To become a franchisee of Big O tires, you need to worth a minimum of $300,000. This net worth is not inclusive of liabilities.

Liquid Cash Requirement

A minimum liquid capital of $100,000 is required to own a Big O tires franchise.

Initial Franchise Fee

An initial franchise fee of $30,000 maximum is required. It is also required to reimburse Big O tires for any tax paid on this fee apart from income tax.

Other Fees of Big O Tires Franchise


You are required to pay a royalty of 2% on monthly gross sales.

Point of Purchase Packages

A maximum of $1,500 yearly

National Anti-Service Warranty and Roadside Assistance Plan

This costs $75 monthly per store.

National Marketing Fee

This is about 0.9% of monthly gross sales.

Local fund for Advertising and Related Expenditures

This is a minimum of 4% of monthly gross sales.

Big O Tires Franchise Training Fee

This also varies. And many other fees

Big O Tires Franchise Training and Assistance

Big O Tires will be responsible for training one person employed by the franchisee on the operation of the Big O tires store online and at a designated Big O store location. The person will be provided with field training and certification at a Big O tires store.

Big O Tires Franchise Application and Terms of Agreement

The initial franchise is for 10 years which is renewable for an additional ten years if the predetermined requirements are met. At the discretion of Big O Tires, the company may agree for a shorter period.

Big O Tires Franchise Obligation and Restriction

Big O stores will only be operated by a person employed by the franchisee but trained and certified by Big O tires.

Any operator or manager to be employed has to complete all required training programs to the satisfaction of the franchisor.

Also, Big O tires have the exclusive right to approve or disapprove the original and later managers or operators. The franchisee should ensure compliance with rules, regulations, and standards of Big O tires.

READ: Franchising Two Men and a Truck

Big O Tires Franchise Territory

The franchise gives the franchisee the right to operate only one Big O store at a location. In most cases, the franchisor will agree not to operate or grant a license to another person to operate more than a store per 50,000 persons.

How to Open a Big O Tires Franchise

For information on how to start a Big O tires franchise visit