Is the approval of the Third Party for retail installment contracts a one-time approval, or is it required for each contract with Byrider?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2/ You may only sell and assign retail installment contracts to unaffiliated third-parties if (a) you obtain Byrider Franchising Partners' approval of the unaffiliated third-party prior to each sale or assignment, and (b) you 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.
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 Byrider's approval of any unaffiliated third-party to whom they intend to sell or assign retail installment contracts. This approval is required prior to each sale or assignment.
This means that a Byrider franchisee cannot simply get a blanket approval for a particular third party and then freely sell them contracts. Each individual transaction requires separate approval from Byrider. This requirement gives Byrider control over which third parties are handling their retail installment contracts.
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. This limitation protects Byrider by ensuring that franchisees do not become overly reliant on third-party financing, which could potentially harm Byrider's core business model.