How To's
Want To Open a Big O Tires Franchise? Here’s What It Will Cost You.
While the global sales of automobiles went down in 2020, the industry itself has many opportunities. In the US alone, there are an estimated 278.6 million vehicles. Thus, opening a business related to automobiles is always a good idea. Instead of starting from scratch, we recommend franchising a business from an already established company. Big O Tires is one of the best ones in the market today. Let’s now talk about the requirements and the Big O Tires Franchise cost.
Franchise Description
Big O Tires started its operations in 1962 when a group of tire dealers came together during the time that automobiles dominated the US market. The company is headquartered in Palm Beach Gardens, Florida, and has become one of North America’s largest retail tire franchisors. The franchisor is Big O Tires, LLC, where the franchisees could operate retail stores offering tires and other related products.
Currently, they offer two franchise models, the Product Distribution Franchises and Business Format Franchises.
Franchisee Training
You will be asked to go through the company’s New Franchise Orientation. This ensures that you understand what the company is and why you should franchise Big O Tires.
The franchisor provides the franchisees an online learning management system, TBC University, where you can enjoy 400 cataloged courses. There is an initial online training program and also a facilitated program. Their training could be held virtually or at any location as required by the franchisor.
The field training and operations certification will be conducted at the Big O Tires Store designated by the franchisor. The duration of the initial training depends on how the franchisor sees the need for it. Generally, it should be one or two days of online training, two weeks of facilitated training, and two weeks each for required and optional field training.
Every year, the franchisor runs national conventions, and the franchisees should attend the first national convention after opening their business.
Territory
The franchisee can operate one Big O Tires store at a single location. For every 50,000 residents in an area, only one Big O Tires store should be established. Thus, the franchisor will not operate nor grant a franchise to other people.
Franchisee Obligations
The Big O Tires store should be managed by the operator or a manager appointed by the franchisee. The franchisor will approve the assigned manager first.
The franchisee and the manager should complete and satisfy all the training programs provided by the franchisor. And of course, the franchisee must agree and comply with all set standards, policies, and regulations set by the franchisor.
Term of Agreement
The initial franchise term is for ten years. This can be renewed for another ten years if all the requirements are met. A shorter-term could be offered at the franchisor’s discretion.
Financial Assistance
The franchisor may offer financing programs to its franchisees. The options and terms could be affected by several factors, including the creditworthiness of the franchisee, accounting rules, and availability of funds. The Big O Tires franchisees can also fast track their Small Business Administration loan process via the Franchise Registry Program.
Did You Know?
While most franchisees are interested to know the Big O Tires Franchise cost, it’s also crucial that you know other details about the company. Here’s more about the Big O Tires.
Best Vet-Friendly Franchise
Big O Tires acknowledges the efforts of the veterans and those who are currently serving the country. And because of that, they waive the $35,000 franchise fee for its eligible franchisees. To date, they have become an industry model with their creative and innovative ways of offering a franchise.
Convert Your Current Shop to Big O Tires
If you have an existing shop and would like to expand your reach, you can also convert it to Big O Tires. And yes, you get to enjoy the benefits of carrying the name and the same support for other franchisees.
Impressive Customer Packages
One of the reasons why Big O Tires has been a big hit over the years is its customer-centric packages. For one, they have comprehensive and Affordable Warranty Protections. In addition, they offer a 12-month/12,000-mile Nationwide Limited Repair Warranty, and 24/7 Roadside Assistance. With these, you can be sure that customers will come flocking your way.
Outstanding Corporate Values
If you are looking for a company to franchise, you should also consider their corporate values. And we have to say that Big O Tires will not disappoint. Take a look at the core values that they practice in the business.
- Build trust in their customer and franchisee relationships
- Deliver legendary customer service
- Provide the highest quality products at a great value
- Give back to their communities
- Adapt and improve every day to grow and win in the marketplace
- Preserve their heritage as they execute their future
More Than 450 Locations in 25 States
With more than 450 locations in various states, and still growing, it shows that the business has so much potential. It also reflects how strong their support system is to their franchisees, something that you have to consider, most especially if you are new to this business model.
Big O Tires Franchise Cost
Your Investment
Take a look at the estimated Big O Tires Franchise Cost below.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $35,000 |
| Initial Training – Fees, Travel & Lodging Expenses | $1,000 | $7,800 |
| Real Estate Leases (One to Three Months’ Rent Plus Security Deposit) | $24,000 | $68,000 |
| Equipment, Fixtures and Other Fixed Assets | $100,000 | $235,000 |
| Construction, Remodeling, Leasehold improvements and Decorating Costs | $25,000 | $350,000 |
| Signs | $10,000 | $50,000 |
| Grand Opening Advertising | $10,000 | $50,000 |
| Initial Inventory | $55,000 | $125,000 |
| Insurance and Other Security (3 months) | $3,000 | $5,500 |
| Computer Hardware and Software | $18,000 | $27,000 |
| Non-Recurring Pre-opening Costs | $5,000 | $35,000 |
| Additional Funds (up to 12 months) | $50,000 | $150,000 |
| ESTIMATED TOTAL* | $311,000 | $1,138,300 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty (Product Distribution Franchises) | 2% of each month’s gross sales. |
| “Local Fund” for Advertising and Related Expenditures | A minimum of 4% of each month’s gross sales, subject to increases or reductions in certain cases (currently reduced to a minimum of 3.6% based on certain marketing programs). |
| National Marketing Fee | Currently set 0.9% of each month’s gross sales (raised from the amount of 0.25% while certain marketing programs are in effect). |
| National Auto Service Warranty and Roadside Assistance Plan | Currently $75 per store, per month, but can be changed by vendor. |
| Tire Protection Plan Service Contract Administration Fee (TPP Fee) and Consumer Liability Insurance Policy Fee (CLIP Fee) | $1.20 per tire. |
| Point of Purchase Packages | Not more than $1,500 per year, as adjusted each year in accordance with Big O policies. |
| Market Reservation Fee | Will vary by circumstances, but generally will be in the range of $2,500 to $6,000. |
| Retail Accounting Centers (RAC) | Varies based on services provided, but not less than $200 per month. |
| National Fleet Accounts Administrative Fees | Varies, currently up to 15% of gross sales to certain national fleet account customers. |
| AMRA Motorist Assurance Program Fees and Dues | Currently $1.00 per year, but subject to change. |
| Transfer Fees | $5,000 upon a transfer involving an assignment of the Franchise Agreement or a change in control. If the transfer does not involve an assignment of the Franchise Agreement or a change in control, the transfer fee is equal to Big O’s expenses relating to the transfer up to $1,500. |
| Insurance Administrative Surcharge | 10% of cost of insurance. |
| Interest on Late Payments | Lesser of 18% per year or maximum rate of interest allowed by law. |
| Successor Franchise Administration Fee | Varies. |
| Real Estate Rental and Fees | Payable to the franchisor if it owns or lease the store location and it leases, subleases or assigns it to the franchisee. |
| Training Fees | Will vary. |
| Training Fees (TBC University) | No charge during the first partial year until the next March 31; charges may apply in future years. |
| National Convention Registration Fees | Varies depending on location and cost of the national convention. The most recent national convention fee was $325 per adult. Occasionally such fees have been waived for early registration or in conjunction with meeting certain sales targets. |
| Resale Fee | $5,000 |
| Products and Services | Will vary. |
| DST End User Software License Agreement Fees | Amount per store: 1. One-time Fees: a. License fee: $1,000 b. Installation fee: $1,500 c. Conversion fee: $500 d. Store Training and On-Site Go-Live Support Fees: $5,500-$6,500 (for 5 days of training that also covers typical travel, lodging and meals expenses) 2. Monthly Maintenance and Support: $219 per month, which may be raised in accordance with the DST End User Software License Agreement. |
| QuickBooks Accounting Integration Fees | a. QuickBooks License – Premier Accountant Edition – $500 b. QuickBooks License – Enterprise Edition – $1,500 per year c. QuickBooks Training – $1,300 d. QuickBooks Setup on Store Server – $150 e. QuickBooks Support during Integration – $1,000 f. QuickBooks Creating Beginning Balances – $850 |
| Fees for Miscellaneous Assistance | Will vary. |
| Indemnification | Will vary under circumstances. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
| Audit Fees | Will vary under circumstances. |
| Bond | Varies; actual amount determined by the franchisee’s local group. |
| Rebill Charge | Currently 0.69% to 19.9% of the price of the tires purchased (or up to 36.64% for trailer tires), subject to change. |
| Interest | The franchisor may charge franchisees interest on various loans or other advances. |
| Product Transfer Payment and Administrative Fee | Product Transfer Payment: The difference between the price paid by a BFF Store and the price that would have been paid by a PDF Store; Administrative Fee: $500 per occurrence of incorrect reporting of a product transfer. |
| Regional Funding Plan Fee | Varies, currently in the range of $0.10 to $1.65 per tire, depending on the RDC and the location of the purchaser. |
| Manual Processing Fees | Varies, not to exceed $75 per occurrence. |
To get more information about other franchises, check out other resources here at Franchise How!
Are you gearing up for a new business in 2024? Forget the next big tech start-up -the latest trend in town might be a perfectly toasted baguette. Take Paris Banh Mi Cafe and Bakery, for instance. This Vietnamese sandwich shop is rapidly growing, with locations popping up from coast to coast, from California to Florida.
But what’s the secret behind their success? Explore why the Paris Banh Mi franchise has snowballed in the last two years and be inspired to start your own business .
About Paris Banh Mi
The French baguette was introduced in Vietnam in the mid-19th century when the country was still a part of French Indochina. In the 1950s, Saigon saw the birth of a unique Vietnamese sandwich, “bánh mì,” which quickly became a favorite food of a large part of the population.
The story of Paris Banh Mi started in Orlando, Florida, at 1021 E Colonial Drive in 2019. Hien Tran and Doan Nguyen, a married couple passionate about food, opened the first Paris Banh Mi location. Their concept was simple: bring the delicious flavors of Vietnamese banh mi sandwiches, traditionally baguettes filled with savory meats and pickled vegetables, to a broader audience.
The customers quickly fell in love with the fresh ingredients, bold flavors, and convenient fast-casual setting. Now, Paris Banh Mi Cafe and Bakery promises to bring their customers the best “Baguette Banh Mi” taste.
In just two years, the laid-back cafe and bakery in Florida multiplied into a chain of stores in the county. Today, Paris Banh Mi is serving customers in 46 locations all across the USA. The company plans to expand to 100+ locations by 2026.
Each Paris Banh Mi Cafe and Bakery has a clean and spacious dining area, fast service, friendly staff, and a selection of delicious food and pastries. Take a peek at some of their mouth-watering baguette sandwiches filled with authentic Vietnamese ingredients.
Source: Paris Banh Mi website
For those craving something sweet, the bakery indulges you with a variety of French pastries. Check out their sandwiches, pastries, and beverages on the Paris Banh Mi Cafe and Bakery menu page.
Source: Paris Banh Mi website
Why Own a Paris Banh Mi Franchise
Paris Banh Mi is a franchised quick-service restaurant offering exciting opportunities for aspiring business owners. Many nail salon owners and aspiring entrepreneurs are switching to buying a Paris Banh Mi franchise. The main reasons why they love Paris are:
- It opens a great opportunity and is more profitable.
- Seamless franchising process and fewer things to worry about
- Required low capital to open
- Higher end-of-year profits
The benefits extend beyond operational efficiency. Paris Banh Mi boasts a surprisingly low-cost entry point compared to other franchises.
The initial franchise fee is manageable at $60,000. The total investment for opening a Paris Banh Mi can range from $200,000 to $500,000. This amount reflects the option to acquire a pre-existing, equipped location (second generation) for a lower investment cost or a complete build-out from scratch option.
Regardless of the chosen route, the investment is significantly lower than that of building a business from the ground up, making Paris Banh Mi an attractive option for many entrepreneurs.
Licensing Information
Owning a Paris Banh Mi franchise is not just about delicious food! The company is looking for dedicated individuals who can run their restaurant full-time. They will provide a multi-day training program for new franchisees. In addition, Paris Banh Mi offers ongoing support for franchisees, guiding them to make informed decisions and thrive in this exciting industry.
You’re a good fit for a Paris Banh Mi Cafe Bakery franchise if you are:
- Passionate about food, especially fresh baguettes and pastries
- A self-starter with a proven track record in business
- Financially responsible with a focus on results
- Ready to fully commit to building the Paris Banh Mi brand
If you have what it takes, don’t hesitate to contact them through the franchise hotlines on their franchise opportunities page.
Conclusion
Buying a restaurant franchise is one of the most attractive routes in the world of franchising. Paris Banh Mi makes owning your own business a lot easier. Forget the high costs and headaches of starting from scratch. Their low investment and comprehensive training program mean you can be your own boss with a delicious product. If you are ready to take a bite out of success, contact Paris Banh Mi today!
Buying a franchise from Chick-fil-A is an excellent money-making and healthy option. The fast-food chain has been serving hungry consumers the most delicious chicken sandwiches unmatched by other fast-food restaurants. Buying a Chick-fil-A franchise means investing in a good business and your future. It also lets you continue the culture behind the popular food chain. Here are Chick-fil-A franchising opportunities that will give you entrepreneurial freedom in 2024.
Company Overview
Founded in 1946 by Truett Cathy, Chick-fil-A is deemed one of the longest-running chicken sandwich chains in the United States. The founder opened his first chain in Hapeville, Georgia, and has become a favorite soul food for many. Truett had worked in restaurants seven times a week and knew the importance of rest. That’s why he vowed to close Chick-fil-A every Sunday. He values rest and worship, so he sets aside one day of the week for his employees—a practice that Chick-fil-A still upholds today.
Chick-fil-A also selects franchisees that uphold their values and passion. The company takes great care in selecting who they do business with, which includes getting to know candidates through a lengthy and intensive selection process. The founder’s vision is to influence the people and communities they serve. Chick-fil-A also seeks franchise candidates in Puerto Rico, Canada, and the United States.
Chick-Fil-A candidates are required to show personal financial integrity and stewardship. They also need to have proven experience in leadership and a strong business acumen. Chick-fil-A ensures that candidates showcase entrepreneurial spirit, a strong character, and a growth mindset. This is to uphold the vision and values that Truett started in 1946.
Franchise Training Details
- The initial on-site training programs last three to four weeks. However, the duration and actual location of the training will vary.
- The training program primarily covers operational aspects, such as food preparation, service, customer relations, accounting, communications, purchasing, planning, maintenance, policies, management styles, and marketing.
- The franchisor may require franchisees to attend various conferences and seminars occasionally. This is on top of the initial training program.
- The franchisor may also offer various programs that operators can use in advertising products or hiring staff, which aren’t stipulated in the Franchise Agreement.
Franchise Territory
- The franchisor will grant franchisees one Chick-fil-A restaurant at the franchisor’s designated location.
- Franchisees will not get exclusive or protected territory, so they may face competition from other operators.
Franchise Obligations and Conditions
- Franchisees must devote their time and effort 100% to operating their Chick-fil-A restaurant.
- The franchisor only allows franchisees to sell products approved by Chick-fil-A. This also applies to franchisees with a Chick-fil-A-associated food truck.
Franchise Term and Renewal
The franchise term expires on early December 31, the year the agreement is signed or whatever the lease expiration is. Franchisees may apply for one-year extensions unless written notice is given 30 days before the franchise term expires.
Financial Assistance
- The franchisor designates locations, leases, and subleases the store’s premises to franchisees. The lease and sublease terms will vary depending on the type of Chick-fil-A restaurant and location.
- The franchisor also engages in concession agreements that oversee the utilization of non-traditional satellite unit locations with the proprietors or administrators of said satellite unit spaces.
- The franchisor offers extended payment periods for specific pre-opening costs stipulated in the Franchise Agreement. Additionally, the franchisor leases equipment to operators, charging a monthly rental fee based on the fair market rental value established by Chick-fil-A using its singular and exclusive business judgment. It’s important to note that neither the franchisor nor any affiliated entities provide any financing arrangements to operators, either directly or indirectly.
Did You Know?
Here are some fun facts about Chick-fil-A you need to know!
- Did you know that Chick-fil-A only uses peanut oil for frying? That’s what makes the chicken its unique flavor! Chick-fil-A is also the single most significant purchaser of peanut oil in the United States. They also believe peanut oil is a healthier option.
- The best Chick-fil-A promotional gig was the “First 100,” where the first 100 customers inside a new Chick-fil-A restaurant would get free chicken for a year.
- Did you know that the founder, Truett Cathy, invented the chicken sandwich? He worked for a restaurant in Atlanta, and the newly delivered chicken breasts were too big to serve as airline food. He turned this into a meal for the staff.
- You can get a free ice cream cone by walking up to the counter and trading your toy when ordering the kid’s meal.
Franchise Cost
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $10,000 | $10,000 |
| Opening Inventory | $13,500 | $140,000 |
| First Month’s Rental of Equipment | $750 | $5,000 |
| First Month’s Lease/Sublease of Premises | $2,550 | $85,500 |
| First Month’s Insurance Expense | $240 | $12,000 |
| Additional Funds | $491,345 | $2,550,935 |
| ESTIMATED TOTAL | $518,385 | $2,803,435 |
Other Fees
| Type of Fee | Amount |
|---|---|
| Advertising | May vary (a) between 0% to 3.25%, to be determined by Chick-fil-A, as a percentage of gross receipts or (b) by vote of operators in local or regional areas. |
| Advertising Support and Services Fee | Advertising support and services fees incurred, if any, will vary based upon the support and services offered by the franchisor, and selected and received by the operator; the current in-house blended hourly rate for services is $100; Operator will pay any additional fees, costs and expenses as applicable. |
| Additional Franchise Fee | $5,000 for each additional Chick-fil-A restaurant business. |
| Business Services Fee | $300 (monthly). |
| Rent (Traditional Restaurant) | $2,550 to $85,500 (including where applicable, percentage rent). |
| Occupancy Charge (Satellite Unit) | Determined under the concession agreement attached as an exhibit to the concession sublicense agreement; currently estimated to range between 4% and 30% of gross receipts. |
| Food Truck Usage Fee (Food Truck) | Currently $2,100 to $3,100, plus additional fees, costs and expenses. |
| Food Truck Insurance Fee (Food Truck) | Currently $250 to $450 (monthly). |
| Insurance | $240 to $12,000 (monthly). |
| Equipment Rental | Currently $750 to $5,000 (monthly). |
| Hardware and Software Support; High-Speed Internet Access | $9,500 to $20,000 (annually). |
| Fines – Minimum Standards and Procedures | Will vary under the circumstances. |
| Indemnification | Will vary under the circumstances. |
| Operating Service Charges | Determined by formula. |
| Credit Cards Fees and Related Processing Fees | Will vary. |
| Highway Signage | Will vary under circumstances. |
| Interest on Late Payments | The maximum rate permitted by law, or if none, 1.25% per month. |
| Cash Handling System Services | $85 to $450 (monthly) |
| Reimbursement of Cost of Performance | Costs and expenses of performance. |
| Holdover Liquidated Damages | Double the base rent and percentage rent. |
Here are the Chick-fil-A franchise costs:
If you’re looking for another investment opportunity, visit Franchise How’s website for more information.
Taking care of your home’s plumbing system is an essential part of being a homeowner. However, not everyone has the skill and patience to do it, and so franchises such as Zoom Sewer and Drain Cleaning are some of the most lucrative. Here’s what you need to know if you’re thinking of getting it:
Franchise Description
Zoom Sewer and Drain Cleaning provides drain cleaning, maintenance, sewer inspections, repair and replacement services for residential and commercial customers. The business began in 1995 and had been franchising since 2013. They have their headquarters in Norristown, Pennsylvania, and Zoom Franchise Company, LLC is the franchisor.
Training
Training for the franchisee’s principal owner and personnel will be provided by the franchisor or its representatives and agents. Before starting your franchise, Zoom Sewer and Drain Cleaning will require you to complete their training program. It comes in two phases:
- Phase 1: 2 to 3 days training at the Franchise Business
- Phase2: 2 to 3 days in Norristown, PA
The franchisor may also require you to attend additional training during the length of your term agreement. The franchisor is planning to hold a 2 to 3-day national Zoom Fest yearly. This will be held in Norristown, PA, or any location it designates. They will require franchisees to attend, but their managers will be welcome.
Territory
The franchisor will designate a protected territory where the franchisees will operate their business. Before signing any Franchise Agreement, both the franchisor and the franchisee will agree on a geographic territory.
The franchisor will base the protected territory on contiguous zip codes that will consist of approximately 500,000 individuals. This will be based on the most recent U.S. Census data at the time of signing the franchise agreement. This means that as long as the deal is taking effect, the franchisor or its affiliates will not locate, operate, or grant a franchise for another Zoom Sewer and Drain Cleaning business within the protected territory.
Obligations
The franchisor requires the franchisee or its principal owner to exert every effort to take responsibility for the management of the business. They will do this on a daily basis unless they agree on an alternate arrangement. With the franchisor’s discretion, the franchisee can hire a manager to handle the operations of the business.
Franchisors will also require you to sell products and services that have their approval. On the other hand, franchisees aren’t allowed to sell unauthorized products or services in compliance with the franchise agreement. Franchisees are also not allowed to solicit business outside of the protected territory. They are, however, permitted to serve customers outside of the protected territory as written in the FDD.
Term of Agreement
The initial franchise will take ten years after the signing of the agreement. You can renew the contract for another ten years, for four times, if you continue to meet the requirements.
Financial Assistance
Zoom Sewer and Drain Cleaning doesn’t offer direct or indirect financial assistance to its franchisees. In addition, they will not guarantee a franchisee’s note, lease, or obligation.
Did You Know?
Get to know more about Zoom Sewer and Drain Cleaning before you get that franchise. Here are some facts about the business:
- They have very little competition in the niche. Most of their competitors are independent plumbers and contractors
- According to the company’s co-founder and COO, Ellen Rohr, this is a recession-resistant business, and the Covid-19 pandemic has proven this
- They have a reported $12 million in revenue with 53 employees and 15 franchisees
Your Investment
The table below shows the estimated cost of a Zoom Sewer and Drain Cleaning franchise. Take note that these numbers may change without any prior notice.
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Lease | $3,000 | $9,000 |
| Leasehold Improvement | $2,000 | $40,000 |
| Furniture, Fixtures and Computer System | $7,500 | $13,000 |
| Vehicles | $7,000 | $9,500 |
| Vehicle Wrap and Design | $4,500 | $5,500 |
| Initial Equipment and Inventory of Supplies | $40,000 | $50,000 |
| Business Licenses and Permits; Deposits and Pre-Paid Expenses | $0 | $5,000 |
| Professional Fees | $500 | $3,000 |
| Insurance – Quarterly | $4,000 | $6,000 |
| Initial Training Expenses | $500 | $3,000 |
| Initial Marketing Expenses | $45,000 | $60,000 |
| Additional Funds – 6 months | $50,000 | $100,000 |
| ESTIMATED TOTAL | $199,000 | $341,000 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 5% of Net Sales. |
| Marketing Fee | Up to 2% of Net Sales. Currently, the franchisor does not charge this fee. |
| Call Center Fee | Up to $25 per scheduled appointment. Currently, the franchisor does not operate the Call Center or charge a Call Center Fee. |
| Technology Fee | The then-current Technology Fee; currently $500 per month. |
| Webpage Development and Optimization Fee | The then-current fee charged by the franchisor’s designated website SEO provider; currently $695 per month. |
| Additional Location Fee | The then-current Additional Location Fee; currently $2,000. |
| Transfer Fee | Up to 50% of the then-current Initial Franchise Fee. |
| Renewal Fee | Up to 25% of the then-current Initial Franchise Fee. |
| Additional Training and Assistance | Fee and all expenses. Currently $1,000 per day plus travel expenses. |
| National Conference | Reasonable fees and all expenses. |
| Testing for Supplier Approval | Reasonable fee. |
| Interest on Late Payments | Lesser of 1.5% per month or maximum legal rate. |
| Audit Fee | Cost of audit. |
| Taxes | Actual cost. |
| Indemnification | Will vary under circumstances. |
| Costs and Attorneys’ Fees | Will vary under circumstances. |
For other franchising information, check out more articles here at Franchise How!
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