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Big O Tires franchise financing options
Compare costs, fees and where to get financing for a Big O Tires.
Estimated initial costs
Our cost estimates are accurate as of 2021 from Franchise Direct and include opening fees and expenses only. The location you choose for your Big O Tires franchise may result in higher or lower fees.
Franchise feesBig O Tires franchise fees total around $22,500, which beats out the $37,000 average for the 200 largest franchises nationwide.
|Initial franchise fee||$10,000 to $35,000|
|Estimated total||$10,000 to $35,000|
Equipment feesEquipment fees total $220,000 for Big O Tires. This costs more than the $180,023 average for the top 200 franchises.
|Equipment, fixtures and other fixed assets||$100,000 to $235,000|
|Signs||$10,000 to $50,000|
|Computer hardware and software||$18,000 to $27,000|
|Estimated total||$128,000 to $312,000|
Real estate feesReal estate will set you back $233,500 for Big O Tires, thought it's less than the average of $788,376 for the top 200 franchises.
|Real estate leases||$24,000 to $68,000|
|Construction, remodeling, leasehold improvements and decorating costs||$25,000 to $350,000|
|Estimated total||$49,000 to $418,000|
Training feesBig O Tires initial training costs total $4,400, which comes in under the nationwide average of $9,788.
|Initial training, including fees, travel and lodging expenses||$1,000 to $7,800|
|Training fees||Will vary.|
|Estimated total||$1,000 to $7,800|
Inventory costsInitial inventory for Big O Tires shakes out to $90,000. This is more expensive than the nationwide average of $53,119.
|Initial inventory||$55,000 to $125,000|
|Estimated total||$55,000 to $125,000|
Marketing costsAdvertisement and marketing costs total up to $30,000 for Big O Tires, which is more than the nationwide average of $9,938.
|Grand opening advertising||$10,000 to $50,000|
|Estimated total||$10,000 to $50,000|
Insurance costsInitial insurance costs for Big O Tires run $4,250. This means you'll be paying less than the overall nationwide average of $6,311.
|Three months' insurance and other security||$3,000 to $5,500|
|Estimated total||$3,000 to $5,500|
Other expensesMiscellaneous expenses for Big O Tires total $120,000 — more than the nationwide average of $69,970.
|Nonrecurring pre-opening costs||$5,000 to $35,000|
|Up to 12 months' additional funds||$50,000 to $150,000|
|Estimated total||$55,000 to $185,000|
How to financeSince the estimated total for Big O Tires is on the more costly side, we recommend following these steps to get fully financed:
- Go to the Big O Tires franchising website and review its financial requirements, including cash-on-hand requirements.
- Reach out to Big O Tires about in-house financing for franchisees.
- If in-house financing isn't available, look for online loans, bank loans and SBA loans to help meet the $724,650 estimated opening costs.
- Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
- Once you settle on a lender, gather all required documents, including account statements and assets.
- Apply for financing online or in person as required by the lender.
What types of financing is available?You have several options when it comes to financing a Big O Tires — even if the cost is on the heavier side. What assets you have available will largely determine how much you need to borrow, and which option suits you best.
- Online loan. A number of online business lenders offer amounts up to $1 million, with some extending up to $5 million.
- Bank loan. Your personal credit will typically need to at least be good — 670 or higher — when it comes to getting a bank loan large enough to cover a significant portion of Big O Tires opening costs.
- SBA loan. While your personal credit score doesn't need to be as good to qualify for an SBA loan, they usually cost more than standard term loans from banks or online lenders.
Compare small business lendersYou may not need financing to cover the estimated $311,000. But if you need funds for other business ventures, select the loan amount, your time in business and revenue and your personal credit score to compare a selection of lenders.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How Big O Tires stacks upCompare how Big O Tires holds up against two similarly sized franchises.
|McAlister's Deli||Big O Tires||Leadership Management International|
|Average Franchise fees||$25,000||$22,500||NA|
|Average Equipment fees||$278,425||$220,000||NA|
|Average Real estate fees||$796,600||$233,500||NA|
|Average Training fees||$64,250||$4,400||NA|
|Average Inventory fees||$12,500||$90,000||NA|
|Average Marketing fees||$16,000||$30,000||NA|
|Average Licenses and permits fees||$4,575||NA||NA|
|Average Insurance fees||$9,250||$4,250||NA|
|Average Admin fees||$6,500||NA||NA|
|Average Personnel fees||NA||NA||NA|
|Average Other fees||$33,000||$120,000||NA|
Bottom lineBig O Tires franchise costs run a total of $724,650. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing read our guide to franchise financing.
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