Big O Tires Franchise Cost (2025)
Complete cost breakdown for Big O Tires franchise: $512K–$1883K investment, 4.25% royalty, franchise fee, and ongoing costs. From the official 2025 FDD.
Source: 2025 FDD filed in MN
Total Investment
$512K–$1.9M
Franchise Fee
$18K
Refundable (conditions apply)
Royalty
4.25%
2% on National/Key Account and Farm Class Tire sales; 2% on Excess Service Dept Sales; 3.5%-5.0% on Adjusted Gross Sales (Royalty Matrix based on sales volume)
Ad Fund
3.6%
Minimum 4% of monthly Gross Sales (currently reduced to 3.6% minimum under certain marketing programs) — Local Fund for advertising
Ongoing Fees
Monthly and annual costs after opening.
| Fee | Amount | Notes |
|---|---|---|
| Royalty | 4.25% of gross sales | |
| Ad Fund | 3.6% of gross sales |
Revenue Context
Average Revenue
$2.8M
From Item 19 (2025 FDD)
Investment-to-Revenue Ratio
0.2x
Lower is better (min inv ÷ avg rev)
Annual Fee Burden
7.8%
Royalty + ad fund as % of gross sales
At average revenue of $2.8M, you'd pay approximately $120K/year in royalties alone, plus $102K/year in ad fund contributions.
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