How does Byrider define 'Gross Receipts (CNAC Collections)'?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Gross Receipts (CNAC Collections). The term "Gross Receipts (CNAC Collections)" shall mean all monies received, such as payments from customer accounts, deferred down payments, payments from bulk sale of customer accounts, and including all other amounts received, except cash down payments received prior to delivery of the vehicle.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Gross Receipts (CNAC Collections) are defined as all monies received from various sources, specifically payments from customer accounts, deferred down payments, and payments from the bulk sale of customer accounts. This definition also encompasses all other amounts received by the franchisee. However, there is a notable exception: cash down payments received prior to the delivery of the vehicle are excluded from this definition of Gross Receipts (CNAC Collections).
For a prospective Byrider franchisee, understanding this definition is crucial because the royalty fees owed to Byrider are calculated based on these Gross Receipts (CNAC Collections). Knowing exactly what constitutes these gross receipts ensures accurate calculation and payment of royalties, avoiding potential disputes with the franchisor. It is important to note that the definition explicitly excludes cash down payments received before vehicle delivery, which must be accounted for separately.
This definition is important for financial reporting and royalty calculations. Franchisees should maintain meticulous records of all income streams, categorizing them accurately to differentiate between includable and excludable receipts. This ensures compliance with the franchise agreement and accurate financial reporting. Byrider provides training for CNAC personnel, including collectors and finance managers, which covers the use of the collections module and legal issues associated with collecting, which would likely include further clarification on what constitutes Gross Receipts (CNAC Collections).
In summary, Byrider's definition of Gross Receipts (CNAC Collections) is comprehensive, covering various forms of customer payments and account sales, but it specifically excludes cash down payments made before vehicle delivery. Franchisees must understand this distinction to accurately calculate and remit royalty fees, ensuring compliance with the franchise agreement.