What approval is required from Byrider Franchising Partners before a Byrider franchisee can sell or assign retail installment contracts to unaffiliated third parties?

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.

In practical terms, this means that a Byrider franchisee cannot independently decide to sell their customer financing contracts to just any outside financial institution. They must first get Byrider Franchising Partners to sign off on the specific third party. This requirement aims to ensure that the third party meets Byrider's standards and won't negatively impact the brand's reputation or customer relationships.

Additionally, the franchisee may not sell or assign retail installment contracts with contract values, in the aggregate, of more than 20% of the Gross Sales (Byrider Vehicle Sales) during any particular calendar month, or more than 20% of the franchisee's Gross Sales 12-month rolling monthly average. This limitation likely exists to prevent franchisees from excessively relying on third-party financing, which could undermine Byrider's own financing operations and revenue streams. 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 franchisee's dealer entity to the Third Party, as well as a Bulk Sale of Accounts Fee equal to 1.90% of gross amounts of Byrider-originated consumer retail installment contracts sold to a third party.