What is excluded from 'Gross Sales (Byrider Vehicle Sales)' when calculating Byrider franchise revenue?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
nchisee is a trust, each trustee or beneficiary signing this Agreement shall be jointly or severally liable for all the obligations and duties of the Franchisee hereunder. Notice to or demand upon one Franchisee shall be deemed notice to or demand upon all Franchisees.
3.7 Gross Sales/Gross Receipts.
Gross Sales (Byrider Vehicle Sales). The term "Gross Sales (Byrider Vehicle Sales)" shall mean the full purchase price of all vehicles sold at retail (whether financed or sold for cash), including charges for vehicle service contracts, documentary fees, and all other fees or charges which accompany the sale, minus overallowances given on trade-in vehicles. For example, the customer's purchase price of the vehicle is $10,000 and the customer has a trade in with an actual cash value of $1,000 and assuming no vehicle service contract or other charges. However, the Franchisee offers $1,500 for the trade in. The "overallowance" is the amount offered of $1,500 less the actual cash value of $1,000 equaling $500. Therefore, "Gross Sales (Byrider Vehicle Sales)" in this example is the full purchase price of $10,000 less the overallowance of $500 which equals $9,500. "Gross Sales (Byrider Vehicle Sales)" excludes receipts from "wholesaled vehicles" and all titling fees and
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the calculation of "Gross Sales (Byrider Vehicle Sales)" excludes specific items. These exclusions are important for franchisees to understand, as "Gross Sales (Byrider Vehicle Sales)" is used to calculate royalty fees.
Specifically, the following are excluded from the calculation of "Gross Sales (Byrider Vehicle Sales)": receipts from "wholesaled vehicles" (defined as vehicles sold for resale and for which no sales tax is required) and all titling fees and taxes imposed by federal, state, or other governmental authority directly and collected from customers, provided that these fees and taxes are actually paid by the franchisee to the relevant governmental authority.
Understanding these exclusions is crucial for Byrider franchisees to accurately calculate their gross sales and, consequently, their royalty fee obligations. Franchisees should ensure they properly document and report these exclusions to avoid any discrepancies or issues with Byrider.