What does Byrider consider a 'BEST PRACTICE' regarding collateral disposition after a charge off?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| Purpose | 9.1 |
|---|---|
| Overview | 9.1 |
| Why does CNAC repossess? | 9.1 |
| BEST PRACTICE: Repossession | 9.1 |
| Before making a decision to repossess | 9.2 |
| BEST PRACTICE: Storing repossessed vehicles | 9.2 |
| Creditor rights | 9.3 |
| Uniform Commercial Code | 9.4 |
| Repossession of collateral – UCC 9-609 | 9.4 |
| STANDARD: Self-help repossession | 9.4 |
| Using an outside repossession vendor | 9.5 |
| PROCEDURE: Set up or edit a Repossession Vendor | 9.6 |
| Forms and instructions for the repossession process | 9.8 |
| Repossession of a vehicle | 9.12 |
| PROCEDURE: Repossess a vehicle | 9.12 |
| Servicemembers Civil Relief Act of 2003 (SCRA) | 9.11 |
| Once a repossessed vehicle is returned to the lot | 9.16 |
| PROCEDURE: Processing a repossessed vehicle returned to the lot | 9.17 |
| Tracking repossessed vehicles | 9.18 |
| PROCEDURE: Locating a vehicle in the Repo Inventory using the "Repo Inventory" tab | 9.19 |
| PROCEDURE: Locating a vehicle in the Repo Inventory using the "Search" tab | 9.21 |
| After recording a repossession in Discover | 9.22 |
| PROCEDURE: Prepare paperwork after repossession | 9.22 |
| Adjust a repossession | 9.24 |
| PROCEDURE: Adjust a repossession | 9.24 |
| Liquidation of a repossession | 9.26 |
| STANDARD: Repossessed vehicles | 9.26 |
| PROCEDURE: Completing Form #11550-Explanation of Calculation of Surplus or Deficiency | 9.27 |
| Charge offs | 9.30 |
| BEST PRACTICE: Charge off | 9.30 |
| PROCEDURE: Charge off an account in Discover | 9.31 |
| BEST PRACTICE: Collateral disposition | 9.32 |
| Charge off maintenance | 9.37 |
| PROCEDURE: Charge off maintenance in Discover | 9.37 |
| Adjust charge off | 9.40 |
| PROCEDURE: Adjust a charge off | 9.40 |
| Deficiency balances | 9.42 |
| STANDARD: Finance charges on deficiency balance | 9.42 |
| STANDARD: Bad debt recovery | 9.42 |
| Back off | 9.43 |
| STANDARD: Back off | 9.43 |
| STANDARD: Refund/Return of down payment, DIP, and trade-in | 9.44 |
| PROCEDURE: Repossessing a back off vehicle | 9.44 |
| Recording the back off in Discover | 9.45 |
| PROCEDURE: Back off a deal in Discover | 9.45 |
| Adjust a back off | 9.49 |
| PROCEDURE: Adjust a back off | 9.49 |
| Mutual release | 9.51 |
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the table of contents in Item 23 references a section regarding 'BEST PRACTICE: Collateral disposition' on page 9.32. This indicates that the document contains information on Byrider's recommended procedures for handling collateral after a charge-off.
However, the provided excerpts do not include the actual content from page 9.32 that would detail what Byrider considers the best practices for collateral disposition. The table of contents only points to the existence of this information within the FDD.
A prospective franchisee should review the full Item 23 in the FDD and ask Byrider for specifics on their recommended 'BEST PRACTICE' for collateral disposition after a charge off. This will help them understand the expected procedures and potential financial implications related to charged-off accounts and the resale or other disposition of the related collateral.