What is the definition of 'Unaffiliated Assignment of Retail Installment Contracts' for Byrider franchisees?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, an 'Unaffiliated Assignment of Retail Installment Contracts' refers to the sale and assignment of retail installment contracts by a franchisee to third parties who are not affiliated with Byrider. However, this is subject to certain conditions.
First, the franchisee must obtain Byrider's approval of the third party before selling or assigning the contracts, and Byrider states that it will not unreasonably withhold such approval. Second, the total contract values of the retail installment contracts sold or assigned to unaffiliated third parties cannot exceed 20% of the franchisee's Gross Sales 12-month rolling monthly average.
This policy allows Byrider franchisees some flexibility in managing their retail installment contracts while ensuring that a significant portion of their business remains within the Byrider system or with approved partners. The 20% limit and the requirement for approval of the third party are designed to protect Byrider's interests and maintain control over the quality and management of its retail installment contracts.