What approval is required for a Byrider franchisee to sell retail installment contracts to a third party?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
der Franchised Locations.
Unaffiliated Assignment of Retail Installment Contracts. You may sell and assign retail installment contracts to unaffiliated third parties (each or collectively "Third Party"); provided, however: (i) you must obtain our approval of the Third Party, which we shall not unreasonably withhold; and (ii) you may not sell or assign retail installment contracts with contract values, in the aggregate, of more than 20% of your Gross Sales 12-month rolling monthly average.
Third Party Financed Sales Fee. You shall pay to us $250 per contract sold or assigned at time of vehicle sale from your dealer entity to Third Party ("Third Party Financed Sales Fee").
Bulk Sale of Accounts Fee. You shall pay a fee equal to 1.9% of gross amounts of Byrider-originated consumer retail installment contracts sold to a third party ("Bu
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee must obtain approval from Byrider Franchising Partners before selling or assigning retail installment contracts to unaffiliated third parties. This approval must be secured prior to each sale or assignment. However, Byrider states that it will not unreasonably withhold its approval.
In addition to obtaining approval, there are also limitations on the value of contracts that can be sold or assigned. A Byrider franchisee cannot sell or assign retail installment contracts with contract values exceeding 20% of the Gross Sales (Byrider Vehicle Sales) during any particular calendar month.
It is important to note that Byrider also charges a "Third Party Financed Sales Fee" of $250 per contract sold or assigned at the time of the vehicle sale from the dealer entity to the third party. There is also a "Bulk Sale of Accounts Fee" of 1.9% of gross amounts of Byrider-originated consumer retail installment contracts sold to a third party.