What is the average gross mark-up for Byrider franchise locations, as stated in the financial performance representation?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Years (period ending December 31 in 2022 and 2023) of Company-Owned Stores Open 24+ Months as of 12/31/2023
| 8 Franchise Locations | Average | Exceed Avg. | Median | |--------------------------------------------------------------------------|-----------|-------------|-----------| | | | | | | Vehicle Purchase Price 26 | $5,886 | 50.00% | $5,872 | | Reconditioning Expense 27 | $2,868 | 25.00% | $2,927 | | Down Payment (cash/trade/deferred) 28 | $3,393 | 37.50% | $3,642 | | Gross Mark-Up 29 | $7,447 | 25.00% | $7,535 | | Installment Contract Amount Financed 32 | $14,572 | 50.00% | $14,580 | | Interest Rate 33 | 21.51% | 25.00% | 22.02% | | Monthly Payment Equivalent Amount 34 | $477 | 37.50% | $484 | | Discount Rate 30 | 30.00% | 100.00% | 30.00% | | | | | | | Average Trade Percentage 37 | 32.93% | 50.00% | 33.58% | | Average CoBuyer Percentage 38 | 23.69% | 37.50% | 25.50% | | | | | | | All Delinquency (% of portfolio 1 or more days delinquent) 35 | 9.02% | 75.00% | 8.70% | | Net Charge Off (as % of Portfolio Amount) 39 | 0.78% | 37.50% | 0.79% | | Static Pool Charge Off (Originations from 2 Years Prior) 40 | 16.31% | 50.00% | 15.83% | | Average Cash on Cash (Originations from 2 Years Prior) 41 | 123.40% | 37.50% | 124.90% | | | | | | | Warranty Expense/Vehicle Sold 31 | $1,012 | 50.00% | $992 | | Average Monthly Marketing Expenses 42 | $13,377 | 50.00% | $12,961 | | Average Monthly Operating Expenses 36 | $171,195 | 37.50% | $178,632 |
Byrider Franchised Stores Systemwide Average Figures for Company-Owned Stores Included in Tables A-3 and A-4
Based on 2 Years (period ending December 31 in 2022 and 2023) of Company-Owned Stores Open 24+ Months as of 12/31/2023
STORE RESULTS BROKEN DOWN INTO QUARTILES
| First Quartile = 2 Stores | Average | Exceed Avg. | Median | Second Quartile = 2 Stores | Average | Exceed Avg. | Median |
|---|---|---|---|---|---|---|---|
| 26 | 36 | ||||||
| Vehicle Purchase Price 26 | $5,872 | 50.00% | $5,872 | Vehicle Purchase Price 26 | $5,958 | 50.00% | $5,958 |
| Reconditioning Expense 27 | $2,978 | 50.00% | $2,978 | Reconditioning Expense 27 | $2,963 | 50.00% | $2,963 |
| Down Payment (cash/trade/deferred) 28 | $3,840 | 50.00% | $3,840 | Down Payment (cash/trade/deferred) 28 | $3,316 | 50.00% | $3,316 |
| Gross Mark-Up 29 | $7,581 | 50.00% | $7,581 | Gross Mark-Up 29 | $7,570 | 50.00% | $7,570 |
| Installment Contract Amount Financed 32 | $14,608 | 50.00% | $14,608 | Installment Contract Amount Financed 32 | $14,562 | 50.00% | $14,562 |
| Interest Rate 33 | 22.12% | 50.00% | 22.12% | Interest Rate 33 | 22.44% | 50.00% | 22.44% |
| Monthly Payment Equivalent Amount 34 | $489 | 50.00% | $489 | Monthly Payment Equivalent Amount 34 | $481 | 50.00% | $481 |
| Discount Rate 30 | 30.00% | 100.00% | 30.00% | Discount Rate 30 | 30.00% | 100.00% | 30.00% |
| Average Trade Percentage 37 | 37.02% | 50.00% | 37.02% | Average Trade Percentage 37 | 18.75% | 50.00% | 18.75% |
| Average CoBuyer Percentage 38 | 28.83% | 50.00% | 28.83% | Average CoBuyer Percentage 38 | 14.39% | 50.00% | 14.39% |
| All Delinquency (% of portfolio 1 or more days delinquent) 35 | 8.44% | 50.00% | 8.44% | All Delinquency (% of portfolio 1 or more days delinquent) 35 | 8.70% | 50.00% | 8.70% |
| Net Charge Off (as % of Portfolio Amount) 39 | 0.66% | 50.00% | 0.66% | Net Charge Off (as % of Portfolio Amount) 39 | 0.85% | 50.00% | 0.85% |
| Static Pool Charge Off (Originations from 2 Years Prior) 40 | 13.73% | 50.00% | 13.73% | Static Pool Charge Off (Originations from 2 Years Prior) 40 | 16.82% | 50.00% | 16.82% |
| Average Cash on Cash (Originations from 2 Years Prior) 41 | 127.02% | 50.00% | 127.02% | Average Cash on Cash (Originations from 2 Years Prior) 41 | 123.67% | 50.00% | 123.67% |
| Warranty Expense/Vehicle Sold 31 | $958 | 50.00% | $958 | Warranty Expense/Vehicle Sold 31 | $866 | 50.00% | $866 |
| Average Monthly Marketing Expenses 42 | $12,961 | 50.00% | $12,961 | Average Monthly Marketing Expenses 42 | $16,525 | 50.00% | $16,525 |
| Average Monthly Operating Expenses 36 | $201,678 | 50.00% | $201,678 | Average Monthly Operating Expenses 36 | $187,540 | 50.00% | $187,540 |
| Attended montainy operating Expenses | Q202,070 | +, | riverage monthly operating expenses | Ģ107,510 | Ψ107,5 TC | ||
|---|---|---|---|---|---|---|---|
| % Met or | % Met or | ||||||
| Third Quartile = 2 Stores | Average | Exceed Avg. | Median | Fourth Quartile = 2 Stores | Average | Exceed Avg. |
Source: Item 19 — Financial Performance Representations (FDD pages 63–81)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Item 19 provides financial performance representations based on historical data from a subset of existing franchise outlets. The data is derived from Byrider's accounting software and includes information from both franchisee-owned and company-owned stores. The financial performance representations include data from 92 franchisee-owned stores, 8 company-owned stores, and a combined set of 100 stores that operated during the entirety of 2022 and 2023.
For the 92 franchisee-owned stores, the average gross mark-up is reported as $6,911. For a smaller subset of 8 franchise locations, the average gross mark-up is $7,447. When considering a larger set of 100 franchise locations (including both franchisee-owned and company-owned), the average gross mark-up is $6,954. These figures represent the average gross mark-up achieved by these stores during the specified period.
It is important to note that these figures are averages, and individual Byrider franchise locations may experience different results. The FDD explicitly states that there is no assurance that a new franchisee will earn as much as the reported averages. Prospective franchisees should carefully review the notes and assumptions underlying these financial performance representations and conduct their own due diligence to assess the potential financial performance of a Byrider franchise.