What is the average gross mark-up for Byrider stores in the second quartile?

r 31 in 2022 and 2023) of Stores Open 24+ Months as of 12/31/2023

STORE RESULTS BROKEN DOWN INTO QUARTILES

| Third Quartile = 25 Stores | Average | Exceed Avg. | Median | Fourth Quartile = 25 Stores | Average | Exceed Avg. | Median | |--------------------------------------------------------------------------|-----------|-------------|-----------|--------------------------------------------------------------------------|-----------|-------------|-----------| | | | | | | | | | | Vehicle Purchase Price ²⁶ | $6,832 | 52.00% | $6,672 | Vehicle Purchase Price ²⁶ | $6,132 | 44.00% | $6,139 | | Reconditioning Expense ²⁷ | $2,385 | 52.00% | $2,381 | Reconditioning Expense ²⁷ | $2,563 | 52.00% | $2,560 | | Down Payment (cash/trade/deferred) ²⁸ | $2,366 | 44.00% | $2,319 | Down Payment (cash/trade/deferred) ²⁸ | $2,426 | 48.00% | $2,382 | | Gross Mark-Up ²⁹ | $6,929 | 44.00% | $6,915 | Gross Mark-Up ²⁹ | $6,798 | 44.00% | $6,578 | | Installment Contract Amount Financed ³² | $14,969 | 36.00% | $14,800 | Installment Contract Amount Financed ³² | $14,453 | 52.00% | $14,542 | | Interest Rate ³³ | 21.34% | 40.00% | 21.00% | Interest Rate ³³ | 21.10% | 36.00% | 21.00% | | Monthly Payment Equivalent Amount ³⁴ | $489 | 24.00% | $484 | Monthly Payment Equivalent Amount ³⁴ | $483 | 52.00% | $483 | | Discount Rate ³⁰ | 28.21% | 72.00% | 30.00% | Discount Rate ³⁰ | 28.66% | 88.00% | 30.00% | | | | | | | | | | | Average Trade Percentage ³⁷ | 18.15% | 36.00% | 14.37% | Average Trade Percentage ³⁷ | 19.42% | 44.00% | 17.65% | | Average CoBuyer Percentage ³⁸ | 11.85% | 40.00% | 11.24% | Average CoBuyer Percentage ³⁸ | 14.02% | 44.00% | 13.24% | | | | | | | | | | | All Delinquency (% of portfolio 1 or more days delinquent) ³⁵ | 11.38% | 40.00% | 11.94% | All Delinquency (% of portfolio 1 or more days delinquent) ³⁵ | 13.67% | 72.00% | 11.11% | | Net Charge Off (as % of Portfolio Amount) ³⁹ | 1.25% | 44.00% | 1.32% | Net Charge Off (as % of Portfolio Amount) ³⁹ | 1.08% | 52.00% | 1.07% | | Static Pool Charge Off (Originations from 2 Years Prior) ⁴⁰ | 25.93% | 52.00% | 25.25% | Static Pool Charge Off (Originations from 2 Years Prior) ⁴⁰ | 23.20% | 60.00% | 21.54% | | Average Cash on Cash (Originations from 2 Years Prior) ⁴¹ | 110.31% | 56.00% | 111.25% | Average Cash on Cash (Originations from 2 Years Prior) ⁴¹ | 111.85% | 64.00% | 112.96% | | | | | | | | | | | Warranty Expense/Vehicle Sold ³¹ | $694 | 56.00% | $685 | Warranty Expense/Vehicle Sold ³¹ | $806 | 52.00% | $783 | | Average Monthly Marketing Expenses ⁴² | $5,782 | 56.00% | $4,802 | Average Monthly Marketing Expenses ⁴² | $5,833 | 44.00% | $6,834 | | Average Monthly Operating Expenses ³⁶ | $170,254 | 76.00% | $156,971 | Average Monthly Operating Expenses ³⁶ | $164,885 | 52.00% | $159,834 |

Notes

• Note 26 "Vehicle Purchase Price" means the average acquisition price per vehicle placed in inventory.
• Note 27 "Reconditioning Expense" means the average expense incurred to acquire and make repairs on an inventory vehicle to prepare it for sale to the public.
• Note 28 "Down Payment" means cash, trade in vehicle, and deferred down payments made by customers in purchasing a retail vehicle.
• Note 29 "Gross Mark Up" means the amount inventory is marked up for profit.
• Note 30 "Discount Rate" means the rate the customer accounts are discounted for sale from the Byrider division to the CNAC division.
• Note 31 "Warranty Expense/Vehicle" means the average of expense per vehicle incurred to make warranty repairs to customer vehicles.
• Note 32 "Amount Financed" means the amount of the sale price financed by the Retail Installment Contract for each vehicle.
• Note 33 "Interest Rate" means the average rate of interest charged in the Retail Installment Contract.
• Note 34 "Monthly Payment Equivalent Amount" means the scheduled payment obligation of the customer in the Retail Installment Contract. The majority of payments are made on a semi-monthly or bi-weekly basis and this figure represents the monthly equivalent.
• Note 35 "All Delinquency" means all dollar amounts as a percentage of the portfolio in which the customer is not current on their payments.
• Note 36 "Operating Expenses" includes on-site and off-site costs associated with the operation of a used vehicle sales and finance operation such as salaries, commissions, collection expenses, personnel costs, utilities, telephone, facilities costs, policy, repair expense, advertising, royalties and advertising fund contribution, and others.
• Note 37 "Average Trade Percentage" means the number of vehicles traded in when a consumer purchases are vehicle divided by the number of gross sales.
• Note 38 "Average CoBuyer Percentage" means the number of retail installment contracts with a second guaranter divided by the number of gross sales.
• Note 39 "Net Charge Off" (as a % of portfolio) means the Net Charge Off divided by the Contract Balance from the previous month.
• Note 40 "Static Pool Charge Off" means the Net Charge Off percentage of dollars that were originated 2 years prior.

Note 41 – "Average Cash on Cash" means the amount of cash collected on accounts that were originated 2 years prior divided by the amount financed from origination 2 years prior.

Note 42 – "Average Monthly Marketing Expenses" means the dollars spent on advertising, agencies, and referrals to create brand awareness and acquire new customers.

Some outlets have earned this amount. Your individual results may differ. There is no assurance you will earn as much.

Byrider Franchising Partners will provide written substantiation for this financial information to prospective franchisees upon reasonable request.

Other than the preceding financial performance representation, Byrider Franchising Partners does not make any financial performance representations. Byrider Franchising Partners also does not authorize its employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing Byrider Business, however, Byrider Franchising Partners may provide you with the actual records of that business. If you receive any other financial performance information or projections of your future income, you should report it to Byrider Franchising Partners' management by contacting Jeffrey B. Higgins, 12802 Hamilton Crossing Blvd., Carmel, Indiana, 46032, 317-249-3000, the Federal Trade Commission, and the appropriate state regulatory agencies.

ITEM 20

OUTLETS AND FRANCHISEE INFORMATION

All figures in the following tables are as of December 31 of each year. For states not listed in a table, there was no activity to report during our last 3 fiscal years.

Systemwide Outlet Summary For years 2021 to 2023

Table No.

Source: Item 19 — Financial Performance Representations (FDD pages 63–81)