Table of Contents WHAT IS BIG O TIRES? ............................................................................................................................. 4 BIG O TIRES HAS MORE THAN 360 FRANCHISED LOCATIONS IN THE UNITED STATES, AND A RICH HISTORY BUILT UPON BUSINESS OWNERS WHO HAVE EARNED CUSTOMERS’ TRUST. ...................................... 4 THE HISTORY OF BIG O TIRES ............................................................................................................... 7 HOW BIG O HAS GROWN OVER 50 YEARS — A BRIEF HISTORY OF A GREAT AMERICAN AUTO SERVICE FRANCHISE ..................................................................................................................................................................... 7 HOW BIG IS THE TIRE INDUSTRY? ....................................................................................................... 9 TIRE SALES TOTALED $37.3 BILLION IN 2013 — AND TIRE SALES ARE JUST PART OF WHAT BIG O TIRES FRANCHISEES OFFER CUSTOMERS .............................................................................................................................. 9 THE BUSINESS OPPORTUNITY IS HUGE ...................................................................................................................... 9 WHY TIRES STORES ARE WELL POSITIONED TO EARN MORE BUSINESS ............................. 11 BIG O TIRES OWNERS’ RELATIONSHIP WITH CUSTOMERS TURNS US INTO ‘THE TEAM YOU TRUST’ ........ 11 WHY DO CUSTOMERS LOVE BIG O, AND HOW DOES THE COMPANY WIN THEIR TRUST? .............................. 12 WHAT CUSTOMERS SAY ABOUT US ................................................................................................... 14 WHAT ELSE MAKES BIG O DISTINCT FROM THE COMPETITION? ........................................... 17 INNOVATIONS, WARRANTIES, CORPORATE BACKING AND BIG O BRANDED TIRE LINEUP HELP BIG O FRANCHISE OWNERS OUTCOMPETE OTHER TIRE STORES ................................................................................... 17 VIP SERVICE ............................................................................................................................................................... 17 SPEED LANES .............................................................................................................................................................. 17 BIG O BRAND TIRES .................................................................................................................................................. 18 HOW DOES THE FRANCHISOR SUPPORT BIG O FRANCHISEES? ............................................... 19 A LOOK AT THE BEHIND-­‐THE-­‐SCENES LOGISTICS OPERATION THAT HELP BIG O STORES STAY AHEAD OF COMPETITORS ............................................................................................................................................................. 19 RESEARCH TO KEEP YOUR PRICES COMPETITIVE ................................................................................................. 19 INVENTORY MANAGEMENT ...................................................................................................................................... 20 THE ABILITY TO SEE THE FUTURE ........................................................................................................................... 20 WHAT MAKES BIG O BRANDED TIRES SPECIAL? .......................................................................... 21 THE BEST VALUE IN THE TIRE MARKET IS A GREAT DEAL FOR OUR FRANCHISEES, TOO ............................... 21 THEY’RE A HECK OF A VALUE ................................................................................................................................... 21 FIRST-­‐TIME CUSTOMERS ARE OFTEN DRAWN INTO A TIRE STORE BY THE SEARCH FOR A GOOD DEAL ..... 21 HOW DOES BIG O HANDLE MARKETING? ........................................................................................ 23 ADVERTISEMENTS, WEBSITE OPTIMIZATION AND MARKET RESEARCH MAKE THE MOST OF MARKETING DOLLARS ...................................................................................................................................................................... 23 2
NATIONAL MARKETING ............................................................................................................................................ 23 LOCAL FUNDS ............................................................................................................................................................. 24 MASTERY OF IN-­‐STORE MARKETING ..................................................................................................................... 24 MARRYING LOW-­‐TECH AND HIGH-­‐TECH TO MAKE CUSTOMERS FEEL APPRECIATED ................................ 24 WHAT TRAINING AND SUPPORT DOES BIG O OFFER? ................................................................ 26 UP TO 7 WEEKS OF INITIAL TRAINING ARE JUST THE KICKOFF TO YEARS OF CONSISTENT SUPPORT ......... 26 ONGOING SUPPORT AND TRAINING ....................................................................................................................... 27 WHAT ARE THE STARTUP COSTS FOR A BIG O FRANCHISE? .................................................... 28 HOW MUCH DOES IT COST TO START MY OWN BIG O TIRE FRANCHISE? ......................................................... 28 YOUR ESTIMATED INITIAL INVESTMENT .............................................................................................................. 29 FINANCIAL PERFORMANCE .................................................................................................................. 34 AVAILABLE TERRITORIES .................................................................................................................... 36 WHERE DOES BIG O OFFER STORES, AND HOW ARE LOCATIONS SELECTED? ................................................. 36 FINDING YOUR LOCATION ......................................................................................................................................... 37 TERRITORY PROTECTION ......................................................................................................................................... 37 MEET THE MANAGEMENT TEAM ........................................................................................................ 37 PRESIDENT & CHIEF EXECUTIVE OFFICER, TBC CORPORATION: ERIK R. OLSEN ........................................ 37 EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER: KEVIN A. KORMONDY ............................. 38 EXECUTIVE VICE PRESIDENT -­‐ FINANCE, CHIEF FINANCIAL OFFICER, AND TREASURER: TIMOTHY J. MILLER ........................................................................................................................................................................ 38 VICE PRESIDENT OPERATIONS: MICHAEL KINNEN ............................................................................................. 38 VICE PRESIDENT OF MARKETING & ADVERTISING: KIMBERLEY L. MCBEE .................................................. 38 DIVISIONAL VICE PRESIDENT OF THE EAST REGION: JAMES A. BULL ............................................................. 39 DIVISIONAL VICE PRESIDENT OF THE WEST REGION: RICHARD S. O'NEIL ................................................... 39 VICE PRESIDENT OF FRANCHISE DEVELOPMENT: WILLIAM KETCHEM .......................................................... 39 FRANCHISEE REVIEWS OF BIG O TIRES ........................................................................................... 40 WHAT TO EXPECT NEXT IF YOU’RE INTERESTED IN BUYING A BIG O TIRES FRANCHISE
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WHAT IS BIG O TIRES?
Big O Tires has more than 360 franchised locations in the
United States, and a rich history built upon business owners
who have earned customers’ trust.
If you’re researching businesses online, you’ve probably noticed the proliferation of review
sites that allow customers to share their experiences. Yelp!®, Angie’s List® and Google
Places® reviews are hugely popular, and it’s no surprise why — people crave the chance to
deal with a company they can trust. That’s what makes Big O Tires so special.
Big O Tires is one of America’s largest tire franchises, with more than 360 franchiseeowned and 40 corporate-owned locations. While tire sales are key to Big O Tires business,
it offers a whole lot more: brake jobs, oil changes, alignments, suspension work, battery
replacement, transmission fluid exchanges, cooling system fluid exchange and fills, brake
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fluid exchanges, power steering fluid exchanges, new wiper blades, belt replacement,
radiator repairs and headlight and taillight replacement.
Every time a customer comes into a Big O store for a tire rotation or other service, the
associates offer a free inspection, which keeps vehicles safe and gives us a chance to help
customers stay on top of routine maintenance and other services to prolong the life of their
vehicle and their tires.
Big O was founded in 1962 by a small
group of tire store owners. They set out
to create the best customer service
experience in the auto services industry.
Today if you walk into one of our stores
it’s common to find customers who have
been coming to Big O for decades,
customers whose parents are Big O
customers, and customers whose
children are now Big O customers.
Paul Day, who owns a Big O Tires
franchise in Woodland, California, interviewed for a job at Big O the day that the
Woodland store opened in 1978. He bought the store 10 years later. The store’s very first
customer, who bought the first set of tires on December 4, 1978, is still a regular customer.
Those kinds of long-lasting customer relationships are very common at Big O Tires.
In spring 2012, we worked with independent ad agency Barkley to conduct consumer
insight research with over 840 Big O customers to better understand our customer
relationships. The results were astounding.
Findings demonstrate that Big O’s customer satisfaction numbers aren’t just good — they
are stratospheric. Based on this research, our Net Promoter Score (NPS), a measure that
gauges overall satisfaction, is 70 — an elite score that positions Big O Tires in the same
category as Nordstrom®, Apple®, Google® and Trader Joe's®. Not bad for an auto service
company! Our customers love us, which is why they keep coming back.
Derek Edwards, who bought his parents’ Big O store in Sandy, Utah, in 2011, has been
adding a lot of new customers, but gets a kick out of seeing the same faces again and again.
Derek was 6 when his parents bought the store in 1990.
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“We have a lot of customers who know
me from when I was pulling weeds and
sweeping the parking lot,” he says. “It’s
really cool. There are lots of older folks
who bring in cookies and doughnuts.
These people become your friends. It’s
amazing how many people come in and
say, ‘Here’s the keys to my car, just take
care of it.’ Because of the Big O name,
people know they can trust you.”
Day, who owns the store in California,
says he likes knowing that when his customers are on the road, they can pull into another
Big O store on the other side of the country and still receive reliable, excellent service.
Bill Walker, who has two stores in Southern Indiana, says he loves spotting Big O
customers. Big O sells its own brand of Big O tires as well as major brands and discount
tires.
“I love when I’m walking through a parking lot and I see a lot of Big O tires, because I
know where they bought them,” says Bill. “There are a lot of nice things about being part
of Big O.”
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THE HISTORY OF BIG O TIRES
How Big O has grown over 50 years
— a brief history of a great American
auto service franchise
The Big O Tires story begins back in 1962, just as
America's new love affair with the automobile was
hitting high gear. The market for replacement tires was
exploding, and independent tire dealers found
themselves struggling to compete in the face of low
prices offered by major tire manufacturers' own
company stores. Big O's founding fathers were a handful
of progressive independent tire dealers who decided to
band together to form a tire-buying cooperative (co-op)
so that they could secure volume pricing and keep their
customers happy. Their concept worked. In the years
that followed, The Big O Tires co-op evolved into a fullfledged auto franchise as it continued to find innovative
ways to harness the power of the group to benefit
dealerships and their customers.
Big O’s founders created a culture steeped in the values
that have made American business great: providing the
best products at the lowest prices; building long, happy
relationships by approaching customers as neighbors;
giving back to the community; and constantly improving
procedures and efficiency in order to maintain and grow
profits.
Big O Tires quickly became one of North America's
largest retail tire franchises. We have more than 360
franchisee-owned and 40 corporate-owned locations in
19 states, providing customers with a broad range of
automotive services in addition to quality tires, wheels
and accessories. Big O has become an industry role
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model admired for its innovative approach to franchising.
Our franchisees are deeply involved in the direction of the business. Bill Thomas, one of
Big O’s founders, helped develop the committee system that still serves Big O today:
Owners in each region meet once a month to discuss their business, successes and
challenges, to discuss marketing strategies, and to find ways to improve. They also elect
members to our Franchise Advisory Council that helps steer the company’s strategic
direction.
In 1996, Big O Tires joined forces with one of the largest and most respected tire marketers
in the nation when it became part of the TBC Corporation, a marketer and distributor of
tires and other products for the automotive replacement market. Big O's reach and
resources were broadened again in 2005, when TBC Corporation was acquired by
Sumitomo Corporation of America, the largest wholly-owned subsidiary of Tokyo-based
Sumitomo, one of the world's leading traders of goods and services. Today, Big O is part of
TBC Retail Group, which is an automotive retail network that includes more than 2,500
locations, including Midas® and SpeeDee® as well as affiliated tire retailers Tire
Kingdom®, Merchant’s® and NTB®.
Independent ownership and major corporate backing combined has created huge
advantages for Big O tire franchise owners, who have built their reputation upon the
customer service mindset and now also enjoy access to the knowledge and resources of
industry giants.
“I’m part of a huge company, but I still get to be an independent guy and still get to be an
individual,” says Bill Walker.
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HOW BIG IS THE TIRE INDUSTRY?
Tire sales totaled $37.3 billion in 2013 — and tire sales are
just part of what Big O Tires franchisees offer customers
In 2013, $37.3 billion worth of replacement tires were sold in the United States, according
to industry trade publication Modern Tire Dealer. Americans drove 2.98 trillion miles in
2013, according to the U.S. Department of Transportation.
The business opportunity is huge
Kevin Brooks, who owns
eight Big O Tires stores in
Colorado’s Western Slope,
is an accountant by trade,
and before Big O, he spent
six years in the tax
business, staring at the
books of a variety of
companies and learning
how to spot opportunities.
He got an in-depth look at
Big O’s books when a
franchisee hired him to help
manage the finances of
three stores. Even though
he didn’t have any automotive experience — “I can’t change a tire, and I’ve never tried.
The guys give me a hard time about it!” — when he got the chance, he didn’t hesitate to
buy his first stores in 1990.
“I didn’t know until I’d been there a while how big the opportunity is,” he says.
“Everybody has to buy tires, change their oil and service their vehicle. We just have to do it
better than the guy down the street. In today’s economy, there aren’t a lot of businesses
where you have something that people have to have. I told my wife when we bought our
first stores, ‘We just won the lottery,’ and that’s how I’ve felt ever since.”
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The price range for a new set of tires can vary widely depending on whether a customer is
buying economy tires, top-of-the-line brand name tires, or Big O brand tires with our
patented designs and unsurpassed warranties. On average, though, customers in 2012 spent
about $550 on a set of four new tires at Big O. According to R.L. Polk & Co., the average
American vehicle has been on the road for 11.4 years, which at an average drive of 15,000
miles a year puts the odometer around 165,000 miles. That generally equals four new sets
of tires.
Take a look at any decent-sized parking lot. For
every 100 cars you see, 11 years worth of tire
changes represents $220,000 in revenue. There
are about 240 million vehicles in the United
States. What’s the value of the tires that are
likely to be sold over an 11-year-span for those
vehicles? $528 billion.
As big as the tire industry is, it’s worth noting
that tire sales make up about 60% of Big O’s
business. We also offer customers oil changes,
brake and transmission fluid changes, new belts,
batteries, brake work, alignments, and
suspension service. But tire sales and our
commitment to customer service are key to
earning other types of business.
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WHY TIRES STORES ARE WELL
POSITIONED TO EARN MORE
BUSINESS
Big O Tires owners’ relationship with customers turns us
into ‘The Team You Trust’
There’s no way to sugarcoat this: The auto service industry has a bad reputation. Whether
customers have received poor service, been stuck waiting in a dirty and unprofessional
atmosphere, or had the experience of having a mechanic walk over with a budget-busting
checklist of recommended repairs, most people have had at least one terrible experience.
Customers often don’t know a lot about the cars they drive, which makes them feel
vulnerable. That’s why, when they find an auto service company they trust, they stick with
it.
For example, below is a quote from a Big O customer named Janet, one of the nearly 1,000
people interviewed last year by marketing firm Barkley:
“My opinion of the auto service industry is that many places are dishonest. Since I don't
know a lot about cars, it's important for me to choose a place I can completely trust. I
definitely trust the place I go to now, so it would take a lot for me to change
places…Overall, I'd say I've had more negative experiences with the auto service industry
than other industries.”
Big O stands out in the auto services industry. Its Net Promoter Score, which takes the
percentage of people who are enthusiastic about a brand and then subtracts people who
could be considered detractors, is 70. That score that puts Big O among elite companies. In
fact, when Barkley benchmarked our score against other companies, they found that we
outperform companies like Nordstrom®, JetBlue®, Google®, Marriott® and Hilton®.
Within the auto services industry, an NPS of 70 is unheard of.
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Why do customers love Big O, and how does the company
win their trust?
Big O has several big advantages over
competitors in the auto service industry.
The first advantage is simple: people don’t
like having to pay big bills for auto repair,
and since most people head to the auto
shop only once something is broken, large
car repair bills often come as a sudden
shock to the pocketbook. Tires are
different. As you put mileage on your
tires, the tread inevitably starts to wear.
The change is visible, so the need for new tires isn’t a surprise. People plan for the expense,
and when they head into a Big O, they have already made the decision that they are going
to spend money to keep their vehicle safe and in good operating condition. They’re coming
to us from a happier mindset.
Big O’s second advantage is its long-term focus. Big O Tires stores are locally owned by
franchisees eager to earn customer loyalty. Big O is not a corporate-owned auto service
chain that rewards managers for maximizing revenue by looking for ways to drive up each
and every invoice. Too many auto shops focus on upselling to the point of generating
sticker shock. They may get one big sale from a frazzled customer, but that customer won’t
be coming back. Big O takes a different approach.
Each time a customer comes in to have their tires rotated or for other service, we provide a
free inspection to check for issues like burned out taillights, test the condition of the
vehicle’s fluids, as well as look for safety and maintenance issues the customer may need to
have on their radar. If we notice that their brake pads are nearing the end of their life, we’ll
let customers know that they will probably want to think about having them replaced the
next time they come in. If we notice that their brakes are on the verge of failure, we’ll
recommend immediate action.
Big O’s main goal is to check that customers’ vehicles are safe, and to help customers stay
on top of routine maintenance that will help them get the most life out of their vehicle and
their tires. Big O’s focus is on the customer, not the invoice.
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“I’ve had a lot of guys who have been shopping here since it opened in 1978,” Bill Walker
says of his store in New Albany, Indiana. “You don’t get that if you haven’t treated them
well. If I caught my employees selling customers something they didn't need, they’d last 15
seconds — and 10 of that would be me kicking them out the door.”
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WHAT CUSTOMERS SAY ABOUT US
As part of marketing firm Barkley’s study of the Big O brand, nearly 1,000 customers were
interviewed. The results quantified something that Big O has known for decades: “The
Team You Trust” isn’t just a slogan, it’s the truth. Here are some of the things customers
say about us:
From the customer satisfaction survey:
•
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Asked to describe the character of Big O Tires, one participant in Whitewater,
Colorado, described us as being like Tom Hanks. “Friendly, honest,
helpful…someone you feel you could trust to always give you a fair deal.”
– Cynthia
•
“The thing with me that always resonated the most here… Jill remembers
everybody that comes in. I’ll come in and she remembers my name…She
remembers what they did even if has been six months or a year…It makes loyalty.
You are being treated like you are a part of their family. They care about your car,
and they care about you. And they want to do the things the right way. I wouldn’t
feel as comfortable going some place that I don’t know that I could trust that they
were going to do everything they could.”
– Kelly, in Sandy, Utah
•
“A good offer is tempting, but I need to know that it is a reputable company that
will back it's products and service. As a woman, I need to be reassured that I won't
be taken advantage of (price gouged). Perhaps when I was younger and didn't have
a financial cushion, I would have always gone with cheap, but now that I can afford
it, I need to make sure that cheap is safe and trustworthy, and my experience with
Big O has been just that.”
– Stacey, in Aurora, Colorado
From online review sites:
• Review of Big O in Alameda,
California, on Yelp: “Wish I could
give 6 stars! I take my car to Big O for
everything. A few highlights from past
visits:My engine cover fell off and I
needed to replace the bolts that hold it
on. Big O ordered them and then
installed the cover for me for free.
Total cost: $65. Oakland VW did the same thing for me years ago for a couple
hundred!— I came in to have a couple hundred dollars in recommended repairs. On
closer inspection, the mechanic said I didn't need most of it and reduced the work
by more than half. — I needed to pick up my car but I was on the other side of the
island with my family. Frank dropped the car off at my house for me!”
— Tina O.
•
Review of a store in Anaheim, California, on Yelp: “This is a ten star rating, oops,
five! Best, most honest, fair and helpful tires and fix-it place I have ever been to.
Tim, the owner, and his crew are great. I am a woman and trust what I am told the
car needs. He installed a battery at no charge a few years ago for me. I had to bring
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the battery, but.... Who does repairs for free? Good prices, good guys. They do more
than just tires, too. Refer all my friends and family.” — Vickie J.
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WHAT ELSE MAKES BIG O DISTINCT
FROM THE COMPETITION?
Innovations, warranties, corporate backing and Big O
branded tire lineup help Big O franchise owners outcompete
other tire stores
Big O Tires offers several advantages that help our franchisees outcompete other tire stores:
VIP Service
Big O Tires takes a 5-step approach to
providing excellent customer service, with
training that helps owners understand
everything that goes into a great customer
experience — everything from how to win a
new customer during an initial phone call, to
how best to speak with customers about
suggested services to keep their vehicle in
great shape, to how to explain an invoice and
follow-up with customers to ensure they had
a great experience.
Speed Lanes
Big O Tires stores feature at least one service lane with garage doors at the entrance and
exit, which allows an assembly line approach to tire changes. Multiple technicians work on
a car simultaneously, which allows Big O associates to install a new set of tires and provide
a basic inspection in as little as 15 minutes. That saves customers a lot of time, and also
allows us to service many cars in a single day, boosting profits.
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Big O Brand Tires
Big O carries economy
tires for customers who
are price shopping for the
cheapest option, and the
company carries national
name brand tires for
customers. An associate
will direct customers to
the tires that best suit
their needs, but what Big
O really loves to sell are
its own Big O brand tires.
Big O’s popularity
exploded after it
introduced its own tires in
1974 and began offering
an industry-best tire service guarantee and warranty — if your tire fails within its warranty
period, we’ll repair it or replace it for free; if you get a flat on the side of the road, we’ll
send a tow truck to change your tire and get you moving again; if you bring your car to a
Big O store, we’ll give you a free rotation and rebalance for the useful life of the tire.
Big O works with American tire manufacturers to design its patented Big O brand tires, and
since it is able to place orders using the combined buying power of all Big O franchisees
and the TBC Retail Group, Big O is able to provide exceptional tires and industry-leading
warranties while preserving a healthy profit margin. Profits aside, the Big O name is in
white lettering on the side of its tires, and there’s nothing quite like walking into a parking
lot, looking down and seeing hundreds of advertisements for your business.
“If you are going to be a tire dealer, you want to be a Big O Tire dealer,” says Joe Happel,
who owns three stores in and around Louisville, Kentucky. “Big O has got its systems
figured out so you can impress customers and make a profit.”
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HOW DOES THE FRANCHISOR
SUPPORT BIG O FRANCHISEES?
A look at the behind-the-scenes logistics operation that help
Big O stores stay ahead of competitors
Big O Tire franchisees enjoy a special
advantage in the market: As independent
business owners, they are their own bosses
and control the management of their
businesses. But they also have a huge
network of tire and retail experts at their
disposal. Big O franchisees work together to
protect and guide the brand, and their input
determines the brand’s strategic direction —
and they also enjoy the knowledge and
resources of tire retail giant TBC
Corporation, which also owns Tire
Kingdom, Merchant’s Tire & Auto Centers,
NTB, Midas, and SpeeDee Oil Change.
Here are some of the help that Big O Tires’
franchise owners can count on —resources
that give our owners a huge leg up on other
independent tire stores.
Research to keep your prices
competitive
Big O Tires customers are extremely loyal,
but that doesn’t matter if your prices and deals aren’t compelling enough to bring customers
in the first time. Most tire buyers research prices online. A typical first time customer may
have heard great things about Big O, but they typically start the process by looking for the
best deal on either discount tires or national brand name tires. Big O employs a team of
researchers who analyze pricing trends in each of our franchisees markets and provide
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recommended pricing every week — and sometimes even more often. Franchisees are free
to set their own prices, which are uploaded to Big O’s website so that price shopping
consumers can check their local store and get the information they crave. At the end of the
day, customers who come into the store often decide that a Big O brand tire offers the best
value — but the initial price listed online is what earns the initial phone call to the store. An
independent tire dealer doesn’t have time to research the pricing of hundreds of
competitors.
Inventory management
Big O has five warehouses that are solely devoted to regularly supplying our franchisees.
The warehouses are in New Albany, Indiana; Denver, Colorado; Salt Lake City, Utah;
Phoenix, Arizona; Mira Loma, California; and Benicia, California; and they typically
provide deliveries twice a week to most Big O stores, and daily deliveries in many areas.
The company’s logistics operation strives to always have the inventory your customers
need. Big O taps national databases to see which cars are on the road in your area and the
age of vehicles. It uses that information as well as an analysis of your existing store stock to
offer to automatically restock your store with the tires your customers are most likely to
order. Big O’s scientific approach takes the guesswork out of managing your inventory,
lowering your costs and helping you maximize profits. Franchisees can also place orders
for specific tires that customers need. Our warehouses carry thousands of different tires, so
if you get a call from a customer who needs an unusual size — like a 185/55/16 for a
Honda Fit Sport — you can have the right tires quickly delivered to your store.
The ability to see the future
Okay, not literally. But since TBC gathers so much data about the vehicles on the road, Big
O can spot when a particular vehicle becomes
popular — and we plan ahead. That odd-sized
tire we mentioned above? If the 2014 Honda
Fit Sport suddenly becomes one of the most
popular cars in America, we’ll spot the trend
and start the process of creating a Big O
branded 185/55/16 tire! Three years from
now, a lot of those 2014 Honda Fits will be
needing new tires, and we’ll have the
inventory ready when they roll into your shop
for the first time.
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WHAT MAKES BIG O BRANDED
TIRES SPECIAL?
The best value in the tire market is a great deal for our
franchisees, too
The Big O name isn’t just on the side of franchisees’ buildings. It’s also on the side of
many of the tires they sell to customers every day. Since 1974, Big O has worked with
American tire manufacturers to create a patented line of tires that are custom-designed for
Big O Tires using specifications that are set by our franchise advisory committees. In the
truest sense, these are our franchisees’ tires.
They’re a heck of a value
Big O Tires co-founder Norm Affleck, who served as president from 1962 to 1984, helped
bring the Big O line of tires to life in 1974. He realized that by using Big O’s collective
buying power to work directly with manufacturers to create our own line of tires, Big O
could cut out middlemen in the production and distribution process and use those savings to
offer then-unheard of warranties and free lifetime services to purchasers of Big O brand
tires. Those warranties and services helped build the customer loyalty that Big O
franchisees enjoy today. It’s not unusual for a Big O Tires store that was open in the ‘70s to
have customers roll in on Big O tires for their fifth decade of service.
First-time customers are often drawn into a tire store by the
search for a good deal
They often shop for the best price on either discount tires or premium brand name tires —
but the best values are usually in between those two extremes. And the absolute best values
usually have the Big O name stamped on the side. Big O combines the knowledge of its
franchisees and the research of TBC Corporation to create tires that use the best, newest
technologies to increase safety and performance. We’ve developed a wide range of tires
suitable for a variety of driving styles and conditions — a speed demon who likes to roar
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around tight curves in the desert roads outside Phoenix will need a very different tire than a
commuter traversing snow-covered highways in Colorado, and we have Big O tires that
meet those driving styles and road conditions, and everything in between.
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HOW DOES BIG O HANDLE
MARKETING?
Advertisements, website optimization and market research
make the most of marketing dollars
How does Big O use marketing to increase customer traffic to our franchisees’ stores? Big
O reaches out in several ways to help customers understand the benefits of shopping at a
trusted name in tire and automotive service.
Here is a look at some of our key efforts:
National Marketing
Big O produces national television, radio
and print advertisements designed — and
tested — to engage customers and let
them know that Big O is a great place to
buy tires. The ads get customers’
attention. Customers’ next step is often
to do research online. That’s why Big
O’s National Marketing Program invests
in optimizing www.bigotires.com to
ensure that when customers are shopping
for tires online, Big O is one of the first
results they see. Big O’s website is
designed to be simple to navigate.
Customers use it to quickly determine
their best tire options, find the closest
Big O store, and see individual store pricing. We also use social media and other public
relations efforts to build goodwill. Big O has a wealth of knowledge about how people can
stay safe on the road, and we’re happy to share it.
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Big O’s National Marketing Program provides point of purchase materials to support
national promotions as well as national programs, templates and a toolbox of branded
marketing items franchisees can use to implement successful marketing campaigns.
Local Funds
Big O franchisees play a key role in guiding how advertising dollars are spent in their
region. Most franchisees are part of a Local Group of other Big O Tires owners who meet
monthly to discuss performance, share ideas for growing their business and discuss local
marketing strategies. The Local Group makes decisions on the execution of the media plan,
which includes radio, TV and print. Want to fill the sky above your city with a Big O Tiresemblazoned hot air balloon? If enough of your fellow franchisees agree, it could become a
reality.
Mastery of In-Store Marketing
Getting people to call or visit your store is great, but it’s what happens next that has set Big
O apart for decades. Big O trains franchisees and store managers to recognize every step of
the customer experience and let customers know they are valued and will be treated fairly
and conscientiously. That begins with the way the associate answers the phone, the way the
customers are greeted before they even get to the front door, focusing on listening to the
issues the customers are trying to solve, offering clear advice, never being pushy, and
explaining the invoices. Big O wants tire buying and vehicle service to be a transparent
process for its customers — figuratively and literally. Every Big O store’s waiting room has
large glass windows that look directly into the service bay so customers can see how their
vehicle is being serviced. It’s yet another way we build trust. “Big O was founded by a
bunch of guys who didn’t have high school educations who are multimillionaires today
because they followed the system,” says Greg Kimberlin, who owns two stores in
Kentucky. “How you meet people at the car, how you handle the cars, how you invoice
people. Follow them and you’ll be successful.”
Marrying Low-Tech and High-Tech to Make Customers
Feel Appreciated
Want to know what really makes a customer feel great about your business? Follow-up. A
day or two after customers visit your Big O Tires, you’ll be prompted to give them a quick
call and ask if they were happy with their service and got the help they needed. Think about
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how you would respond as a customer if a business owner called you to double-check and
make sure you had a great experience! That’s low-tech, but powerful.
Big O’s other way of following-up with customers is much more technologically advanced,
and also very powerful. When a customer comes to Big O for service, the associate may
find 10 things wrong with their car, but the associate is not going to try to convince them to
get everything done at once. People have budgets, and people have constraints on their
time, and Big O Tires respects that. If a customer needs to defer some maintenance — for
instance, if they’re putting off getting new transmission fluid until the next visit — we’ll
note that in the system. Then something amazing happens: Automatically, three or four
weeks after the customer’s visit, Big O’s system generates a postcard mailer with a service
reminder and a coupon tailored to the customer — in this case, perhaps 10% off on
transmission fluid exchange. The postcard will even feature a picture of the same make and
model of vehicle that the customer drives. It’s a huge “wow” factor, and another way of
encouraging customer loyalty.
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WHAT TRAINING AND SUPPORT
DOES BIG O OFFER?
Up to 7 weeks of initial training are just the kickoff to years
of consistent support
New Big O Tires franchise owners receive several weeks of training to help them
understand the systems that have made Big O one of the leading tire franchises in North
America. In addition to covering the nitty-gritty of the sales process, bookkeeping and tire
changing, it also covers understanding Big O’s culture and the way that everything we do
works together to create an outstanding customer experience.
“It’s about building a relationship with your customer who is going to keep coming back
and is going to tell their friends and family about you — organic growth, the kind of wordof-mouth marketing that you can’t buy,” says National Training Manager Len Taylor.
Big O offers seven weeks of training to new franchisees: one week of online training
followed by two weeks of classroom training, two weeks of on-site training inside a Big O
Tires store, a week of training on how to use Big O’s point of sale and customer
relationship management software, followed by a week of training on how to analyze and
react to key performance indicators.
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Franchisees also receive extensive documentation that they can consult with for detailed
answers about the business, including manuals that include written, electronic, audio, video,
and Internet instructions for how to run their business, detailed standards, policies and
procedures. Franchisees also receive access to the Big O Tires Website Business Center, a
repository of guidelines, tips and the information about the latest initiatives.
Ongoing Support and Training
Big O’s division vice presidents, Rick O’Neil for the west and Jim Bull for the east,
oversee a team of Franchise Business Consultants (FBC) who visit each franchisee and
serve as a constant resource.
“From the top down, the guys that work with Big O corporate are fantastic,” says Josh
McCullough, who owns a store in Jeffersonville, Indiana. “They’ll answer a cellphone on
Saturday night at 9 o’clock. We have an FBC who I can reach at any time, Gary Skidmore,
who can answer any questions I may have. He’s always looking out for me. For instance,
yesterday he sent me a text telling me go online and take this test to be eligible to win a trip
to Hawaii because I met the conditions for a contest Big O is holding. He stops by stores
and answers questions and gets franchisees anything they may possibly need.”
The franchise support goes beyond phone calls and onsite visits. FBCs also serve as
facilitators during monthly owners meetings — listening, advising and sharing company
news to ensure that Big O’s corporate team understands the ground-level concerns of
franchisees and can share best practices.
Another key area of support grows from those monthly meetings:
Local franchise groups elect representatives to the Big O Franchise Advisory Council
(“FAC”). FAC plays an integral role in guiding Big O by speaking directly to the
executives at Big O’s corporate office in Palm Beach Gardens, Florida. When the FAC
meets, we listen. TBC President, Chairman and CEO Larry Day regularly attends the FAC
meetings, and members of all key departments are also available so that if Big O
franchisees have a question about any aspect of the business, they don’t have to wait for an
answer.
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WHAT ARE THE STARTUP COSTS
FOR A BIG O FRANCHISE?
How much does it cost to start my own Big O tire franchise?
Because Big O operates in 20 different states and market conditions can vary, and because
some franchisees choose to purchase their land and building rather than lease their space,
the investment range for a Big O Tires franchise can vary substantially. The table on the
next page, from Item 7 of our Franchise Disclosure Document, outlines the various costs
that go into launching your first Big O Tires franchise.
There are several options for financing a Big O Tires franchise.
Big O is part of the SBA Franchise Registry, created in 1998 to streamline the process
banks use to determine franchisees’ eligibility for SBA loans. When the agency approves a
franchise system for inclusion, it agrees to guarantee 75 to 85 percent of any loan to
franchise candidates, reducing the risk to banks and increasing the likelihood of approval.
Before approving franchisors for inclusion, the agency must sign off on their disclosure
documents to ensure they meet SBA standards for size and franchise owner independence.
The review allows banks to skip several steps in the approval process, saving them time and
energy.
SBA loans are just one of many financing options that franchisees have used to buy their
businesses. To learn more, give us a call at 1-800-622-2446.
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Your Estimated Initial Investment
Refundability
To Whom
Payment Made
See Item 5
See Item 5
Big O
As Agreed
Nonrefundable
Third Parties
$64,000
As Specified in
Lease
As Agreed
Some or all of the
security deposit may
be refundable at the
end of the lease term
Big O or Third Parties
$100,000
$275,000
See Note 4
As Agreed
Nonrefundable
Big O and Third Parties
Construction, Remodeling,
Leasehold Improvements and
Decorating Costs (See Note 5)
$5,000
$330,000
As Incurred
As Agreed
Nonrefundable
Big O and Third Parties
Signs
$10,000
$35,000
As Incurred
As Agreed
Nonrefundable
Big O or Third Parties
Grand Opening Advertising
$10,000
$50,000
As Incurred
As Agreed
Nonrefundable
Third Parties
Initial Inventory
$35,000
$125,000
As Incurred
As Agreed
Nonrefundable
Big O and Third Parties
Insurance and Other Security (3
months) (See Note 6)
$2,000
$5,000
As Incurred
As Agreed
Nonrefundable
Third Parties
Computer Hardware and
Software (See Note 7)
$16,200
$18,900
As Agreed
As Agreed
Nonrefundable
Big O or Third Parties
Expenditures
Low
High
When Due
Initial Franchise Fee (See Note
1)
0
$30,000
See Item 5
Initial Training- Fees, Travel &
Lodging Expenses (See Note 2)
$1,000
$7,800
As Incurred
$4,000
Real Estate Leases (One to
Three Months' Rent Plus
Security Deposit) (See Note 3)
Equipment, fixtures and other
fixed assets (See Note 4)
Method of
Payment
29
Expenditures
Low
High
When Due
Method of
Payment
Non-recurring Pre-opening Costs
(See Note 8)
$5,000
$35,000
As Agreed
Cash
Nonrefundable
Third Parties
Additional Funds (up to 12
months) (See Note 9)
$50,000
$150,000
As Incurred
As Agreed
Nonrefundable
Third Parties
TOTAL ESTIMATED INITIAL
INVESTMENT (See Note 10)
$238,200
$1,125,700
Refundability
To Whom
Payment Made
Explanatory Notes
Note 1: Initial Franchise Fee. The initial franchise fee may vary as described in Item 5.
You must reimburse us for any taxes (other than income taxes) we pay on your initial franchise
fee so that the net amount received by us is as set forth in the Franchise Agreement.
Note 2: Initial Training – Fees, Travel and Lodging Expenses. We may charge you
training fees, except that the initial Online Training, Facilitated Training, and on-location
training program for one person are included in the initial franchise fee. In addition, you will
have to bear expenses arising in connection with your training, such as travel, lodging and other
living expenses. More details may be found in Item 11 of our FDD.
Note 3: Real Estate Leases. If you do not own adequate space, you will need to lease the
land and building for your Store. Typically locations for a Store are prime retail sites. You will
generally need a facility of 5,000 to 7,536 square feet to operate your store with a prototypical
store sized at 6,240 square feet. The base monthly rent is estimated to range from $4,000 to
$16,000 per month, depending on geographic location, size of the premises and other economic
factors. Typically, these leases are triple net leases, under which the tenant must pay all taxes,
insurance and maintenance expenses over and above the base rent amount. The estimate
provided assumes that you will rent the facility and that you must provide a security deposit of
one month’s base rent to the landlord. In a build-to-suit lease, the landlord may include some or
all of the improvements, fixtures, equipment and signs in the cost to build the building and
factor these costs into your lease payments. We provide a number of Store lease programs for
which you may be eligible. These programs are described in Item 10 of our FDD. You may
elect to purchase the land and building rather than renting. If you purchase the land and build
your store, your estimated combined costs for the land and building construction may range
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from $900,000 to $2,000,000 depending upon market conditions. If you purchase an existing
building and remodel it, your costs may be less. You will not incur the premises rent costs
listed above, but will have to factor in additional costs for acquisition and construction of the
building.
Note 4: Equipment, Fixtures and Other Fixed Assets. The high estimate is based on
the purchase of new equipment and fixtures and the low estimate is based on the purchase
through Big O, or others, of used or refurbished equipment and fixtures. Generally, you must
pay 25% of the equipment order at the time you place the order or, in the alternative, you must
provide an irrevocable letter of credit to secure payment of the equipment order. The entire
balance you owe for equipment and fixtures and the amount due for your initial inventory order
must be paid in full before your initial inventory order is shipped to you. Another alternative is
to lease equipment, in which case you must provide proof of the equipment lease agreement.
This estimate also includes any investment related to the TBC Retail Group Service Central
Program, in which you are required to participate. This program is further described in Items 8
and 11 of our FDD.
Note 5: Construction, Remodeling, Leasehold Improvements and Decorating Costs.
These estimates do not include new construction; the cost of new construction is discussed in
Note 3 above. The cost of remodeling, leasehold improvements and decorating costs will vary
based on a variety of factors, such as the location of the Store and the type and condition of the
building to be remodeled, improved or decorated. This estimate includes the amount of any real
estate development fee if we develop the site for your Store and use a third party developer to
develop the site and your Store. This estimate also includes the amount of any real estate
consulting charges if you utilize the services of members of the Big O real estate department
for consultation in regard to the development, construction, remodeling or conversion of your
Big O Store. See Item 5 of our FDD.
Note 6: Insurance and Other Security. You must maintain insurance described in Article 21
of the Franchise Agreement and in our Manual and as required by the terms of your lease or
sublease, as may be applicable. We may change these insurance requirements periodically.
Currently, the types of insurance and the minimum dollar amount of coverage you must
maintain are: (a) Workers’ Compensation; (b) Comprehensive or Commercial General Liability
(including among other things, product liability) with limits not less than $1 million per
occurrence and $2 million general aggregate; (c) Vehicular/Automobile Liability of not less
than $1 million per occurrence combined single limit; (d) “All Risk” Property for
repair/replacement coverage and valuation of all assets and Business Income/Extra Expense
insurance; (e) Garage liability of not less than $1 million per occurrence and $2 million
general aggregate and Garagekeepers Legal Liability of not less than $100,000 combined single
limit per location; and (f) Commercial Umbrella Liability of not less than $1 million per
occurrence combined single limit. Other insurance coverage is recommended by Big O and you
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must maintain these other coverages if required by law where the franchised business operates.
These may include Inland Marine, Boiler and Machinery, Employment Practices Liability and
Comprehensive Fidelity/Crime. The investment amounts set forth in the table represent three
months of initial commitment costs with additional premiums at or just before opening.
Premiums for these coverages will vary greatly because of location, amounts of coverage,
values being insured, annual sales, number of employees, experience ratings, and other
factors. A transferee of a Franchised Business or a franchisee under the CPR Plan must, at our
discretion, obtain a surety bond or letter of credit of not less than $10,000 (or such other
amount as we may periodically designate) to secure payment of contributions to the National
Marketing Program, the Local Fund, or both. Fees for these bonds or letters of credit will vary
based on a variety of factors, including the transferee’s or other franchisee’s creditworthiness.
Note 7: Computer Hardware and Software. You must acquire, install and use the BOT
POS System. You must pay (i) the Navex software license fee to Big O, (ii) all fees for
installation, conversion, training and onsite support to Big O, and (iii) monthly fees for
maintenance and support to Big O, or as otherwise directed by Navex and Big O. Franchisees
acquiring the BOT POS System are also responsible for all hardware and management costs.
The estimated approximate average initial cost to purchase and install the BOT POS System
(including the license fee, installation fee, conversion fee and store training and on-site go live
support fees described in Item 6) is $19,500 to $21,500 (See Item 11 for more details).
Note 8: Non-recurring Pre-opening Costs. This estimated amount includes deposits for utilities,
fees for city, state and local business licenses, any loan origination fees, any bank fees, and
other non-recurring expenses.
Note 9: Additional Funds. This amount includes estimated pre-operational expenses not
listed above, as well as estimated additional funds necessary to pay on-going expenses not
covered by sales revenues for the first twelve months of operations, including payroll costs.
You may have additional expenses starting or converting your business. Your costs depend on
several factors, including how much you follow our methods and procedures, your management
skill, experience and business acumen, local economic conditions, the local market for our
products and services, the prevailing wage rate, competition, your competitive advertising and
promotion, and the sales level reached during the initial period. Also, if you wish to become a
franchisee of a new Store with an anticipated “high” cost real estate project, you must, at our
discretion, meet certain higher net worth and liquidity requirements before we approve you as a
franchisee. The current standards for high real estate costs are $2 million or more for purchased
real estate or lease payments of $16,000 per month or more for leased real estate. The
current net worth and liquidity requirements are a net worth of $300,000 or more and liquid
assets (that is, cash and cash equivalents) of $100,000 or more when you are leasing an existing
store or a new store and a net worth of $500,000 or more, and liquid assets (that is, cash and
cash equivalents) of $150,000 or more when you are leasing an existing store or a new store
32
and a net worth of $1,000,000 or more, and liquid assets of $300,000 or more for a high cost
real estate project.
Note 10: Total Estimated Initial Investment. We have relied on our experience since 1962 in
the retail tire store and automotive service business in compiling these estimates. You should
review these figures carefully with a business advisor before making any decision to purchase a
franchise. Other than the limited situations discussed in Item 10 of this Disclosure Document,
we do not offer financing directly or indirectly for any part of the initial investment.
33
FINANCIAL PERFORMANCE
Financial performance is determined in part by location, but is greatly influenced by the
skill of the owner and their ability and willingness to follow Big O’s systems. The
following chart is from Item 19 of our Franchise Disclosure Document. It includes the
average retail sales per store information for calendar year 2013 for all stores that reported
sales for each and every month in 2013. This table does not include all franchised stores.
Some stores have sold this amount. Your individual results may differ. There is no
assurance that you’ll sell as much.
34
Included Stores Meeting or Exceeding
Average Sales in Row
Sales Categories
Over $2.0M
$1.5M to $2.0M
$1.0M to $1.5M
Under $1.0M
Total
# Stores
104
90
122
62
378
Average Sales
$ 2,684,569
$ 1,713,601
$ 1,259,510
$ 819,410
$ 1,687,521
Number of
Included Stores
38
42
64
37
181
% of All
Included Stores
in Row36.5%
46.7%
52.5%
59.7%
47.9%
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AVAILABLE TERRITORIES
Where does Big O offer stores, and how are locations
selected?
Whether you want to open a brand new store, convert your existing store, or explore the
possibility of taking over an existing store, Big O Tires offers many opportunities. Big O
has more than 360 franchisee owned stores and 40 company owned store in 19 states:
Arizona, Arkansas, California, Colorado, Idaho, Indiana, Kansas, Kentucky, Missouri,
Montana, Nebraska, Nevada, New Mexico, Oklahoma, Oregon, South Dakota, Utah,
Washington and Wyoming. If you don’t live in one of these states, we still want to hear
from you! Big O continues to expand, while taking care not to place a Big O franchise in an
area where they would compete directly with one of TBC Corporation’s company-owned
stores (NTB, Merchant’s and Tire Kingdom). The map below shows the current geographic
distribution of the four brands, which work together to secure the best pricing and back one
another’s warranties — providing nationwide coverage for our customers.
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Finding your location
Big O helps franchisees conduct site evaluations, negotiate purchases and leases, or seek
financing if you plan to convert an existing business. We also occasionally have prime
facilities available for lease or purchase. Big O Tires stores are generally located in hightraffic areas near other auto service businesses. Our speed lanes — a distinctive service and
major profit-driver for Big O — require a location in which customer vehicles can be
quickly moved and lined up at the back side of the building, where they enter the Speed
Lane before exiting out the front once service is complete.
Territory protection
Big O Tires requires at least 50,000 people for each Big O store in a given area, and each
location enjoys a two-mile radius between it and any other store. Additionally, in most
cases, existing franchisees receive the First Option to buy a proposed Big O store within
five miles of their existing locations.
MEET THE MANAGEMENT TEAM
President & Chief Executive Officer, TBC Corporation:
Erik R. Olsen
Erik joined TBC in December 2004 as Senior Vice President & Chief Marketing Officer.
From 2005 to 2008 the responsibility of President – Carroll Tire Company was added to his
role. Olsen was then named President and CEO of TBC Wholesale Group, and was elected
to TBC Corporation’s Board of Directors in 2008. In 2013 he was appointed Chief
Operating Officer, and in January 2014 he took office as TBC Corporation’s President and
Chief Executive Officer. Mr. Olsen held various senior management positions with
Michelin North America from 1996 to 2004. Prior to joining Michelin, Mr. Olsen held
marketing and sales positions of increasing responsibility with Procter & Gamble, The
Clorox Company, and Ralston Foods. Mr. Olsen received his undergraduate degree from
the University of North Carolina at Chapel Hill.
37
Executive Vice President and Chief Operating Officer:
Kevin A. Kormondy
Kormondy has served as our Executive Vice President and Chief Operating Officer since
March 2008. Also, since March 2008, he has served as a member of the Managing Board of
BORE/MPC, LLC, and since April 2008, he has served as the President of the Big O Tires
Scholarship Fund, Inc. Prior to that he was our Senior Vice President – Business
Development from April 2006 until March 2008. From February 2002 through April 2006,
he served as one of our Divisional Vice Presidents. Prior to its disposition in March, 2009,
he served as a member of the Managing Board of One Stop Undercar Denver, LLC, a
former subsidiary of ours in Denver, CO.
Executive Vice President - Finance, Chief Financial Officer,
and Treasurer: Timothy J. Miller
Miller has served in his current position since October 2006. From August 2002 through
September 2006, he served as our Vice President and Treasurer. He served as our Assistant
Treasurer from September 2000 to August 2002. He served as Senior Vice President of
Corporate Finance of TBC Corporation from December 2005 to September 2006, and as
Treasurer of TBC Corporation from August 2002 to December 2005.
Vice President Operations: Michael Kinnen
Kinnen has been our Vice President Operations since June 2008. Prior to that he was our
Vice President Finance since March 2008. Prior to that, he was the Vice President Finance
& Treasurer of VICORP Restaurants in Denver, CO, from October 1996 to February 2008.
Since March 2008, he also serves as Treasurer of Big O Tires Scholarship Fund, Inc. and
serves as a member of the Managing Board of BORE/MPC, LLC, and prior to its
disposition in March, 2009, served as a member of the Managing Board of One Stop
Undercar Denver, LLC.
Vice President of Marketing & Advertising: Kimberley L.
McBee
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McBee has served as our Vice President of Marketing & Advertising since March 2012.
She initially became employed with us in September 2008, first as Director of Marketing &
Advertising, later being promoted to Senior Director of Marketing & Advertising in July
2010. Prior to serving with us, she served as Vice President of Marketing for Red Robin
Gourmet Burgers, Inc., in Denver, CO, from January 2006 to July 2008 after serving as
director from 2002 to 2006. Prior to 2002, she was Vice President of Marketing for
LeCarniessier, LLC, a franchisee of Red Robin.
Divisional Vice President of the East Region: James A. Bull
Bull has been employed by us since November 2005 as one of our Divisional Vice
Presidents. Before, he was Vice President of Retail for Merchants Tire & Auto Centers, and
was also a manager with Western Auto Supply Co./Advance Auto for more than 20 years.
Divisional Vice President of the West Region: Richard S.
O'Neil
O'Neil has been employed by us since February 2009 as our Divisional Vice President of
the West Region. Before that, he was Regional Sales Manager – West Coast for
QMIEVER-WEAR in Lakeland, FL, from March 2002 to December 2008.
Vice President of Franchise Development: William Ketchem
Ketchem was appointed as Vice President of Franchise Development in April 2012. He
joined TBC Corporation in April 2008 where he held positions of Financial and Operations
Consultant for Big O Tires, and Director of Acquisitions and Special Projects.
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FRANCHISEE REVIEWS OF
BIG O TIRES
Tony Williams of Mesa, Arizona, owns
seven Big O stores. He previously worked
at Bridgestone/Firestone for 10 years:
“I have a friend who works at Big O who informed me of
their program and product line. Working for Firestone,
customers came in sometimes with Big O tires. Trying to
convert that customer from Big O to any other tire was
virtually impossible. I couldn’t get them out of Big O for
anything.”
Greg Kimberlin, who owns two
franchises in Kentucky, says Big O is
very proactive about franchisees:
“I could not find a better business than I have today. With
the distribution, the product lines, the size of (Big O Tires
parent companies) TBC Corp. and Sumitomo, there is
nothing better. A few years ago when the U.S. put a big
tariff on Chinese tires, it created huge inventory and supply
chain problems for a lot of people, but we never felt it. TBC
and Sumitomo were big enough and smart enough to
adjust, so we weren’t disrupted and we didn’t see a spike in our costs.”
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Bill Walker, who owns
two stores in Southern Indiana:
“Big O has been around since 1962. There’s a lot of
history and great stories and great people who helped
build this up. You take a lot of pride in being part of this
corporation. Every year when we go (to the annual
convention), it just makes you want to carry on the
tradition. … I remember blowing up balloons for kids
and tying them onto wrists. Now I’m blowing up balloons and putting them on their kids’
wrists. We’re not trying to get people to pay for things they don’t need and make their bills
huge. We tell them what they need and then see how much they can afford, and take care of
them. That’s the attitude we take and that’s why people shop with us and their kids shop
with us and their kids’ kids shop with us. “
Bruce Cherry owns six Big O stores in
Northern California:
“If you’re on your own, … you have to advertise on your
own, do all your own pricing. Pricing is always big. In
the marketplace, it changes — it seems like hourly. If
you’re independent, you have to have your own website
or pay someone to do it. We have pricing people who do
pricing; they check the market. As an independent, you
have to do it or pay someone to do it for you. The other
things are marketing and the showroom. I don’t do that;
Big O provides me with marketing material, and tire
stands and displays. We also have a very good credit card program.”t Steps
Rand Rogenes has three stores in
California.
“One of my managers has been around 21 years, another
younger guy 8, another one 20. I have very low turnover
— practically zero turnover. That probably has to do with
our basic philosophy is that our customer and our
employees are No. 1.”
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WHAT TO EXPECT NEXT IF
YOU’RE INTERESTED IN BUYING
A BIG O TIRES FRANCHISE
Thanks for taking the time to learn about Big O Tires.
We’ve built a strong brand over the past 50 years, and look forward to adding more great,
ambitious businesspeople to our team. If you would like to learn more, we encourage you
to fill out the form to the right to download our free franchise report, and one of our team
members will be in touch. You can also give us a call at 1-800-622-2446.
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We look forward to getting to know you, and giving you a chance to get to know us! That’s
the first step in our franchise award process, which is designed to help us determine if
we’re a great match.
Here’s a brief outline of the process:
After you fill out a form or give us a call, we’ll send you a brochure about the Big O
opportunity and will begin an evaluation of your market to start to determine the best
available sites for a Big O store if we are selling Big O franchises in your state. We’ll also
go over some basics about startup costs.
We will then send you a copy of our Financial Disclosure Document (FDD). If you’ve
never seen an FDD before, you might be surprised by all the detail and intricacy that goes
into the document. Franchise companies are required by the Federal Trade Commission to
provide FDDs to ensure that franchisees get a full picture of the opportunities, costs and
royalties involved with the business. Because the FTC-outlined document is so lengthy, we
like to go over the document with franchise candidates so we can explain the document and
answer any questions.
The FDD also contains a list of franchisees so you can give them a call and get their
perspective on the company.
Next, you’ll have a chance to interview members of our operations team. Assuming
everyone agrees that Big O is a great fit, we’ll award you a franchise and begin the training
process and start getting your site ready for business!
Franchise Offering Disclaimer:
This information is not intended as an offer to sell, or the solicitation of an offer to buy, a
franchise. It is for informational purposes only. Currently, the following states regulate the
offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan,
Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia,
Washington, and Wisconsin. If you are a resident of or want to locate a franchise in one of
these states, we will not offer you a franchise unless and until we have complied with
applicable pre-sale registration and disclosure requirements in your state.
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