What was the average interest rate for Byrider stores in the first quartile?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
r 31 in 2022 and 2023) of Stores Open 24+ Months as of 12/31/2023
STORE RESULTS BROKEN DOWN INTO QUARTILES
| First Quartile = 25 Stores | Average | Exceed Avg. | Median | Second Quartile = 25 Stores | Average | Exceed Avg. | Median |
|---|---|---|---|---|---|---|---|
| Vehicle Purchase Price 26 | $7,166 | 52.00% | $7,162 | Vehicle Purchase Price 26 | $6,579 | 48.00% | $6,72 |
| Reconditioning Expense 27 | $2,395 | 64.00% | $2,134 | Reconditioning Expense 27 | $2,214 | 48.00% | $2,287 |
| Down Payment (cash/trade/deferred) 28 | $2,597 | 36.00% | $2,332 | Down Payment (cash/trade/deferred) 28 | $2,552 | 48.00% | $2,457 |
| Gross Mark-Up 29 | $7,148 | 52.00% | $7,190 | Gross Mark-Up 29 | $6,942 | 56.00% | $7,092 |
| Installment Contract Amount Financed 32 | $15,484 | 52.00% | $15,661 | Installment Contract Amount Financed 32 | $14,388 | 56.00% | $14,621 |
| Interest Rate 33 | 20.80% | 44.00% | 20.35% | Interest Rate 33 | 21.45% | 48.00% | 21.23% |
| Monthly Payment Equivalent Amount 34 | $495 | 44.00% | $487 | Monthly Payment Equivalent Amount 34 | $480 | 40.00% | $476 |
| Discount Rate 30 | 29.28% | 64. |
Source: Item 19 — Financial Performance Representations (FDD pages 63–81)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the average interest rate for stores in the first quartile varies depending on the store groupings. For the group of 25 stores in the first quartile, the average interest rate is 20.80%. In another grouping of 23 stores, the average interest rate for the first quartile is 20.68%. For a smaller group of 2 stores, the average interest rate in the first quartile is 22.12%.
These figures represent the average interest rates charged on installment contracts financed by Byrider stores in the lowest-performing quartile. The interest rate is a critical factor in the profitability of Byrider franchises, as it directly impacts the revenue generated from financing vehicle sales. The data also shows the percentage of stores exceeding the average, which can give potential franchisees an idea of the distribution of interest rates within each quartile.
The varying interest rates among different store groupings in the first quartile may reflect differences in local market conditions, franchisee management practices, or other factors. It's important to note that these are averages, and individual store performance can vary significantly. A prospective franchisee should investigate further to understand the factors that contribute to these differences and how they might impact their own potential performance.
Prospective franchisees should consider these interest rates in conjunction with other financial performance metrics, such as vehicle purchase price, reconditioning expenses, and delinquency rates, to develop a comprehensive understanding of the financial dynamics of a Byrider franchise. Understanding the interplay between these factors is crucial for assessing the potential risks and rewards of investing in a Byrider franchise.