What does the CNAC finance division of a Byrider Business operate as?

According to Byrider's 2025 Franchise Disclosure Document, a Byrider Business is divided into two distinct divisions: the Byrider sales division and the CNAC finance division. The CNAC finance division operates specifically as an auto financing provider. This means that as a franchisee, you will not only be involved in the retail sales of used vehicles through the Byrider sales division but also in providing financing options to customers through the CNAC finance division.

The FDD emphasizes that these two divisions are distinct elements within the Byrider Business and that the franchisee is responsible for operating and funding both. Byrider Franchising Partners may allow the CNAC finance division to operate through a separate legal entity. However, if this is the case, that separate entity will be required to sign an Acceptance and Assumption of Obligations agreement.

Prospective franchisees should understand that operating an auto financing provider involves compliance with various state and federal laws and regulations. The FDD specifically mentions state usury laws, advertising laws, and federal truth-in-lending laws as examples of regulations that apply to the financing element of the Byrider Business. Additionally, some states may require franchisees to obtain a sales finance license. Therefore, it is crucial for potential franchisees to be aware of these legal requirements and to ensure they have the necessary resources and expertise to comply with them.