For the 8 Byrider franchise locations, does the net income from operations include revenue or expenses from related warranty reinsurance and real estate holding companies?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| 8 Franchise Locations | Average | Revenue | Exceed | Median | Revenue |
|---|---|---|---|---|---|
| Annual Vehicle Sales6 | 309 | 320 | |||
| Sales Revenue2,11 | 5,392,322 | 70.17% | 50.00% | 5,529,445 | 72.51% |
| Finance Revenue3,11 | 2,292,276 | 29.83% | 50.00% | 2,191,053 | 28.73% |
| Total Revenue4,11 | 7,684,598 | 100.00% | 50.00% | 7,625,909 | 100.00% |
| Cost of Goods Sold5 | 4,784,802 | 62.26% | 50.00% | 4,919,318 | 64.51% |
| Total Gross Profit7 | 2,899,795 | 37.74% | 50.00% | 2,720,436 | 35.67% |
| Total Operating Expense8 | 1,957,137 | 25.47% | 62.50% | 2,045,688 | 26.83% |
| *Net Income from Operations (before taxes)9 | 942,659 | 12.27% | 37.50% | 841,477 | 11.03% |
| 10 | 3,049 | 2,628 | |||
| Net Income per Vehicle Sold | |||||
| *does not include revenue or expenses from related warranty reinsurance and real estate holding companies |
Source: Item 19 — Financial Performance Representations (FDD pages 63–81)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the net income from operations for the 8 franchise locations does not include revenue or expenses from related warranty reinsurance and real estate holding companies. This is explicitly stated in a note accompanying the financial performance data.
Specifically, the table presenting financial results for these 8 franchise locations includes a line for "Net Income from Operations (before taxes)" which is footnoted with an asterisk. The footnote clarifies that the figures provided exclude any financial impact from related warranty reinsurance and real estate holding companies. The average net income from operations for these locations is $942,659, representing 12.27% of revenue, while the median net income is $841,477, or 11.03% of revenue.
This exclusion is important for prospective franchisees to understand because it provides a clearer picture of the core operating performance of the Byrider franchise itself, without the potential distortion of related-party transactions. A prospective franchisee should seek clarification from Byrider regarding the nature and extent of these related warranty reinsurance and real estate holding companies, and how they might indirectly impact the franchise's overall financial performance.