What is the definition of 'Third Party' in the context of Byrider's retail installment contracts?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
der Franchised Locations.
Unaffiliated Assignment of Retail Installment Contracts. You may sell and assign retail installment contracts to unaffiliated third parties (each or collectively "Third Party"); provided, however: (i) you must obtain our approval of the Third Party, which we shall not unreasonably withhold; and (ii) you may not sell or assign retail installment contracts with contract values, in the aggregate, of more than 20% of your Gross Sales 12-month rolling monthly average.
Third Party Financed Sales Fee. You shall pay to us $250 per contract sold or assigned at time of vehicle sale from your dealer entity to Third Party ("Third Party Financed Sales Fee").
Bulk Sale of Accounts Fee. You shall pay a fee equal to 1.9% of gross amounts of Byrider-originated consumer retail installment contracts sold to a third party ("Bu
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, a 'Third Party' refers to unaffiliated entities to whom a franchisee may sell and assign retail installment contracts. This definition is relevant to the fees that Byrider franchisees may incur.
Specifically, Byrider franchisees have the option to sell and assign their retail installment contracts to these unaffiliated third parties. However, this is conditional on Byrider's approval, which Byrider states it will not unreasonably withhold. There is also a limit on the value of contracts that can be sold or assigned, which cannot exceed 20% of the franchisee's Gross Sales 12-month rolling monthly average.
If a Byrider franchisee sells or assigns a contract to a third party, they must pay Byrider a 'Third Party Financed Sales Fee' of $250 per contract at the time of the vehicle sale. Additionally, a 'Bulk Sale of Accounts Fee' is applied, which is equal to 1.9% of the gross amounts of Byrider-originated consumer retail installment contracts sold to a third party.