What conditions must a Byrider franchisee meet to sell and assign retail installment contracts to unaffiliated third parties?

According to Byrider's 2025 Franchise Disclosure Document, a franchisee may sell and assign retail installment contracts to unaffiliated third parties, referred to as "Third Party," if they meet certain conditions.

First, the franchisee must obtain Byrider's approval of the Third Party. However, Byrider states that it will not unreasonably withhold this approval. This suggests that Byrider has the right to vet and approve any third-party financing source the franchisee intends to use.

Second, the franchisee cannot sell or assign retail installment contracts with contract values exceeding 20% of the franchisee's Gross Sales 12-month rolling monthly average. This limitation is in place to ensure that franchisees do not over-rely on third-party financing and maintain a significant portion of their business through Byrider's affiliated CNAC entity or other approved methods. Byrider also charges a Third Party Financed Sales Fee of $250 per contract sold or assigned at the time of the vehicle sale from the franchisee's dealer entity to the Third Party, as well as a Bulk Sale of Accounts Fee equal to 1.90% of the gross amounts of Byrider-originated consumer retail installment contracts sold to a third party.