What constitutes the 'Down Payment' when purchasing a vehicle from a Byrider franchise?

According to Byrider's 2025 Franchise Disclosure Document, the down payment when purchasing a vehicle from a Byrider franchise consists of cash, the trade-in value of a vehicle, and deferred down payments made by customers. This definition is important for prospective franchisees to understand, as the average down payment impacts the installment contract amount financed and the overall financial performance of the franchise.

Specifically, the FDD provides financial performance representations based on data from Byrider businesses. For example, across 92 franchise locations, the average down payment was $2,406. For 100 franchise locations, the average down payment was $2,485. For 8 franchise locations, the average down payment was $3,393. These figures give potential franchisees an idea of the typical down payments collected at Byrider locations.

Understanding the composition of the down payment (cash, trade-in, or deferred payments) is crucial for managing cash flow and assessing the risk associated with retail installment contracts. Franchisees should analyze these components to forecast revenue and manage potential losses, as deferred payments may carry a higher risk of default. Byrider provides written substantiation for this financial information to prospective franchisees upon reasonable request.