Big O Tires Franchise FDD, Profits & Costs (2025)
Big O Tires is a prominent player in the automotive service industry, specializing in tires and related services. Founded in 1962 by a group of independent tire dealers, the company emerged in response to the growing market for replacement tires.
Originally conceived as a tire-buying cooperative, Big O Tires has grown into a well-established franchise model, which began in the years following its foundation.
Headquartered in Palm Beach Gardens, Florida, Big O Tires operates as a subsidiary of TBC Corporation, one of North America’s largest marketers of automotive replacement tires.
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Initial Investment
How much does it cost to start a Big O Tires franchise? It costs on average between $376,000 – $1,573,000 to start a Big O Tires franchised center.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of facility you choose, the location, and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee/Minimum Deposit | $10,000 – $17,500 |
| Initial Training Fees, Travel & Lodging Expenses | $1,000 – $9,000 |
| Real Estate Leases (Three Months’ Rent Plus Security Deposit) | $24,000 – $100,000 |
| Equipment, fixtures and other fixed assets | $135,000 – $395,000 |
| Construction, Remodeling, Leasehold Improvements and Decorating Costs | $25,000 – $500,000 |
| Signs | $10,000 – $75,000 |
| Grand Opening Advertising | $10,000 – $50,000 |
| Initial Inventory | $75,000 – $187,500 |
| Insurance and Other Security (3 months) | $10,000 – $20,000 |
| Computer Hardware and Software | $20,500 – $33,500 |
| Non-recurring Pre-opening Costs | $5,000 – $35,000 |
| Additional Funds (up to 12 months) | $50,000 – $150,000 |
| Total | $376,000 – $1,573,000 |
Average Revenue (AUV)
How much revenue can you make with a Big O Tires franchise? A Big O Tires franchised center makes on average $2,624,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,258,000 yearly revenue for similar auto parts franchises. Below are 10 Big O Tires competitors as a comparison:
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We have compiled the list of the top 400 franchises across 9 industries. Download the report below.
Big O Tires Franchise Disclosure Document
Frequently Asked Questions
How many Big O Tires locations are there?
As of the latest data, Big O Tires operates over 465 franchised locations across 25 states in the U.S. These locations are independently owned and operated, with no company-owned stores. The brand continues to expand, offering franchise opportunities nationwide and maintaining a strong presence in the tire and automotive service industry.
What is the total investment required to open a Big O Tires franchise?
The total investment required to open a Big O Tires franchise ranges from $376,000 to $1,573,000.
What are the ongoing fees for a Big O Tires franchise?
Big O Tires franchisees are required to pay a 5% royalty fee on gross sales. Additionally, there is a 3% marketing fee based on gross sales, which covers national and regional advertising efforts to promote the brand and drive traffic to franchise locations. This ensures franchisees receive ongoing brand support and visibility in the competitive automotive service industry.
What are the financial requirements to become a Big O Tires franchisee?
To become a Big O Tires franchisee, the minimum net worth required is typically $300,000, with at least $100,000 in liquid capital. These financial benchmarks ensure that potential franchisees have the financial stability to cover startup costs and maintain operations during the initial stages of the business.
How much can a Big O Tires franchise owner expect to earn?
The average gross sales for a Big O Tires franchise are approximately $2.62 million per location. Assuming a 15% operating profit margin, $2.62 million yearly revenue can result in $393,000 EBITDA annually.
Who owns Big O Tires?
Big O Tires is owned by TBC Corporation, a major tire and automotive services company. TBC Corporation, in turn, is a subsidiary of Sumitomo Corporation of Americas, which acquired TBC in 2005. Big O Tires has been part of TBC Corporation since 1996, making it a key player in their portfolio of retail tire and automotive service brands.
Disclaimer
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