www.franchise.org

IFA Convention Monday, March 7, 2005

John HydukeSenior Vice President- Franchise Development

Big O Tires, Inc.

“Sponsored Franchise Financing”

• Big O Tires is the largest franchisor in the Automotive Retail Tire segment. We have been franchising the concept since 1982. We currently have 570 stores in twenty-one states. All of them are franchised outlets. We are the fastest growing tire retailer in America. We have opened over 170 stores over the last four years and we expect to open 120 more this year.

Big O Tire store locations

Big O was acquired by TBC Corp. in 1995. TBC is publicly traded on NYSE. TBC also owns:

A wholesale tire operation serving 5000 independent tire dealers.

243 Company owned stores in the Southeast.

112 Company owned stores in Virginia and North Carolina.

225 Company owned stores in the eastern half of the country.

To sustain this type of growth we cannot wait for applicants to find solutions to their financing needs. To speed up the process, we have created relationships with lenders and developers to:

• Help new applicants with SBA loans.• Assist existing expansion-minded franchisees

with conventional financing needs.• Develop and lease real estate.

• SBA direct lenders:

• Wachovia Bank

• CIT

• GE Commercial Finance

• GE Commercial Finance

• Advantages to new franchisees for using “Sponsored Financing Programs”. Our financing vendors:

• Are willing to meet and qualify prospects before the application process.

• Treat our applicants with care and respect.• Have a streamlined approval process for our deals.• Have confidence in our selection process.• Meet with us regularly to give status updates.• Design custom financing programs to meet specific

needs.

Advantages to existing franchisees for using “Sponsored Financing Programs”. Our financing vendors:

• Will finance expansion projects with conventional financing programs.

• We help franchisees restructure existing financing plans.

• Will help franchisees with acquisitions.• Will help finance partner buy-outs.

• Real Estate Developer relationships• Market analysis assistance• Site selection assistance• Build to suit leases

• Low overhead costs• Below market CAP rates• Below market rent escalators

• Leases with options to purchase• Built on time due to builder relationships

• Advantages to franchisees for using “Sponsored Developers”. Our developers:

• Approve the sites we approve.• Can get stores built faster and cheaper than

local developers.• Work closely with our support staff to

coordinate the delivery and installation of equipment and other pre-opening tasks.

• Work with standardized lease documents.• Design special programs for multi-store owners.