Where in the Byrider FDD can I find the best practices for handling co-mingled funds?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| Purpose | 5.1 |
|---|---|
| The Office Manager/Controller | 5.1 |
| CNAC organization | 5.1 |
| Contract administration | 5.2 |
| Maintain the deal jacket | 5.3 |
| BEST PRACTICE: Deal jackets | 5.3 |
| BEST PRACTICE: Banking forms | 5.3 |
| Track titles | 5.5 |
| PROCEDURE: Track title information | 5.6 |
| Tracking insurance | 5.9 |
| PROCEDURE: Track insurance information | 5.10 |
| PROCEDURE: When proof of insurance coverage is not received | 5.13 |
| PROCEDURE: When a Notice of Insurance Cancellation is received | 5.14 |
| BEST PRACTICE: Customer insurance | 5.14 |
| Other considerations associated with vehicle insurance | 5.15 |
| PROCEDURE: Applying an insurance check to a customer's account | 5.16 |
| Prepare Sales Tax forms | 5.17 |
| Cashiering and cash control | 5.17 |
| BEST PRACTICE: Co-mingled funds | 5.17 |
| Accept the down payment on a vehicle purchase | 5.18 |
| PROCEDURE: Accept the customer's down payment on a vehicle purchase | 5.18 |
| BEST PRACTICE: Control of cash down payments | 5.18 |
| The cashier greeting | 5.19 |
| STANDARD: Account Representative (Collector) payments | 5.19 |
| BEST PRACTICE: Cashier verification of customer information | 5.19 |
| Payment Acceptance screen and its informational features | 5.20 |
| PROCEDURE: Accessing the Payment Acceptance screen | 5.20 |
| The customer attempts to pay less than required | 5.29 |
| BEST PRACTICE: Cashier responsibilities | 5.29 |
| Accepting contractual payments | 5.30 |
| PROCEDURE: Accept a standard payment on a contract | 5.30 |
| PROCEDURE: Accepting an external payoff on account with an VSC | 5.41 |
| Accept non-standard contractual payments | 5.41 |
| PROCEDURE: Accepting a non-standard contractual payment | 5.41 |
| Down payments on a Service repair order | 5.43 |
| PROCEDURE: Accepting a customer's deposit on a repair order | 5.43 |
| PROCEDURE: Refunding a customer's deposit on a repair order | 5.46 |
| Accepting payment for a Service Department repair order | 5.47 |
| PROCEDURE: Accepting payment for a Service Department vehicle repair | 5.47 |
| Accept payment for a mechanical DIP (MDIP) | 5.50 |
| Handling drop box payments | 5.51 |
| BEST PRACTICE: Drop box security | 5.51 |
| BEST PRACTICE: Accounting for drop box payments | 5.53 |
| Reprinting a receipt for a contractual payment | 5.54 |
| PROCEDURE: Reprinting a receipt for a contractual payment | 5.54 |
| PROCEDURE: Printing a receipt for an automatic ACH payment | 5.56 |
| PROCEDURE: Printing a receipt for automatic credit card payments | 5.57 |
| Miscellaneous account correspondence | 5.58 |
| Post a payment adjustment | 5.59 |
| BEST PRACTICE: Internal control of payment adjustments | 5.59 |
| PROCEDURE: Post an adjustment to an account | 5.59 |
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, best practices for handling co-mingled funds are addressed in Item 23, specifically under the section related to cashiering and cash control. The table of contents excerpt indicates that 'BEST PRACTICE: Co-mingled funds' can be found under section 5.17 within Item 23.
For a prospective Byrider franchisee, this reference is crucial because co-mingling funds (mixing personal or other business funds with franchise revenue) can create accounting and legal issues. Byrider provides specific guidance to ensure franchisees properly manage and account for all financial transactions. This helps maintain transparency and compliance with financial regulations.
Therefore, any franchisee should consult section 5.17 to understand Byrider's recommended procedures for handling funds to avoid potential penalties or disputes. This guidance likely includes protocols for separating funds, maintaining accurate records, and conducting regular audits to ensure compliance.