Big O Tires Franchise FDD, Profits & Costs
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.
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 |
Big O Tires Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Big O Tires franchise?
Most franchise buyers in Big O Tires’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Big O Tires franchise investment?
Payback periods for franchises in Big O Tires’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
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.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
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