To whom does a Byrider franchisee pay the Third Party Financed Sales Fee?

According to Byrider's 2025 Franchise Disclosure Document, a franchisee must pay the Third Party Financed Sales Fee to Byrider. Specifically, the franchisee pays Byrider $250 per contract sold or assigned at the time of the vehicle sale from the franchisee's dealer entity to a third party.

This fee is applicable when a Byrider franchisee sells or assigns retail installment contracts to unaffiliated third parties. However, the franchisee must first obtain Byrider's approval of the third party and may not sell or assign contracts exceeding 20% of their Gross Sales 12-month rolling monthly average. This fee is in addition to other fees that Byrider franchisees are required to pay, such as royalty fees and advertising fees.

It is important for prospective Byrider franchisees to understand all the fees involved in operating a franchise, as these can significantly impact profitability. Franchisees should carefully review Item 6 of the Franchise Disclosure Document and discuss any questions or concerns with Byrider before signing the Franchise Agreement.