What is the average interest rate for Byrider stores in the third quartile?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
686 | 56.52% | $165,214 | Average Monthly Operating Expenses 36 | $159,927 | 60.87% | $151,437 |
| Third Quartile = 23 Stores | Average | Exceed Avg. | Median | Fourth Quartile = 23 Stores | Average | Exceed Avg. | Median | |--------------------------------------------------------------------------|-----------|-------------|-----------|--------------------------------------------------------------------------|-----------|-------------|-----------| | | | | | | | | | | Vehicle Purchase Price 26 | $6,808 | 56.52% | $6,609 | Vehicle Purchase Price 26 | $6,139 | 52.17% | $6,139 | | Reconditioning Expense 27 | $2,392 | 56.52% | $2,325 | Reconditioning Expense 27 | $2,573 | 52.17% | $2,560 | | Down Payment (cash/trade/deferred) 28 | $2,430 | 43.48% | $2,322 | Down Payment (cash/trade/deferred) 28 | $2,376 | 47.83% | $2,347 | | Gross Mark-Up 29 | $6,901 | 52.17% | $6,915 | Gross Mark-Up 29 | $6,807 | 43.48% | $6,578 | | Installment Contract Amount Financed 32 | $14,878 | 34.78% | $14,503 | Installment Contract Amount Financed 32 | $14,541 | 56.52% | $14,661 | | Interest Rate 33 | 21.24% | 39.13% | 21.00% | Interest Rate 33 | 21.11% | 34.78% | 21.00% | | Monthly Payment Equivalent Amount 34 | $486 | 39.13% | $482 | Monthly Payment Equivalent Amount 34 | $485 | 47.83% | $485 | | Discount Rate 30 | 27.83% | 69.57% | 30.00% | Discount Rate 30 | 28.54% | 86.96% | 30.00% | | | | | | | | | | | Average Trade Percentage 37 | 18.94% | 39.13% | 14.37% | Average Trade Percentage 37 | 18.68% | 43.48% | 15.79% | | Average CoBuyer Percentage 38 | 12.96% | 43.48% | 11.24% | Average CoBuyer Percentage 38 | 13.01% | 47.83% | 12.87% | | | | | | | | | | | All Delinquency (% of portfolio 1 or more days delinquent) 35 | 11.21% | 43.48% | 11.94% | All Delinquency (% of portfolio 1 or more days delinquent) 35 | 14.18% | 73.91% | 11.14% | | Net Charge Off (as % of Portfolio Amount) 39 | 1.22% | 43.48% | 1.32% | Net Charge Off (as % of Portfolio Amount) 39 | 1.10% | 52.17% | 1.09% | | Static Pool Charge Off (Originations from 2 Years Prior) 40 | 25.56% | 52.17% | 25.25% | Static Pool Charge Off (Originations from 2 Years Prior) 40 | 23.57% | 56.52% | 21.54% | | Average Cash on Cash (Originations from 2 Years Prior) 41 | 110.69% | 56.52% | 111.25% | Average Cash on Cash (Originations from 2 Years Prior) 41 | 111.38% | 60.87% | 112.56% | | | | | | | | | | | Warranty Expense/Vehicle Sold 31 | $709 | 56.52% | $687 | Warranty Expense/Vehicle Sold 31 | $791 | 56.52% | $762 | | Average Monthly Marketing Expenses 42 | $5,739 | 60.87% | $4,744 | Average Monthly Marketing Expenses 42 | $5,550 | 43.48% | $6,834 | | Average Monthly Operating Expenses 36 | $170,450 | 73.91% | $156,971 | Average Monthly Operating Expenses 36 | $169,477 | 47.83% | $173,368 |
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
| 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.
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 third quartile is 21.24% based on 23 stores, and 21.34% based on 25 stores. This means that, on average, Byrider franchisees in this performance range are charging customers an interest rate of approximately 21.24% to 21.34% on their installment contracts. This figure is important for prospective franchisees to consider as it directly impacts the revenue generated from financing agreements.
The FDD also indicates that for the 23 stores in the third quartile, 39.13% exceeded the average interest rate, while for the 25 stores, 40.00% exceeded the average. The median interest rate for both groups is 21.00%. This suggests that while the average interest rate is around 21.24% to 21.34%, half of the stores in this quartile have interest rates at or below 21.00%.
It's crucial to understand that interest rates can significantly affect the attractiveness of Byrider's financing options to customers and the overall profitability of the franchise. Prospective franchisees should analyze these figures in conjunction with other financial performance metrics, such as delinquency rates and charge-offs, to gain a comprehensive understanding of the financial dynamics of a Byrider franchise. Understanding the factors that influence interest rates and how they impact the bottom line is essential for making informed business decisions.