Are Byrider franchisees restricted in terms of the customers to whom they may offer goods and services?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Byrider Franchising Partners requires you to offer and sell only those goods and services that Byrider Franchising Partners has approved (see Item 9). You must offer all goods and services that Byrider Franchising Partners designates as required for all franchisees. Currently, franchises offer used vehicles for sale, financing and related products. Byrider Franchising Partners has the right to change the types of authorized goods and services. You will not be restricted as to customers to whom you may offer goods and services.
You may only sell and assign retail installment contracts to unaffiliated third-parties if (a) you obtain Byrider Franchising Partners' approval of the unaffiliated third-party prior to each sale or assignment, and (b) you may not sell or assign retail installment contracts with contract values, in the aggregate, of more than 20% of the Gross Sales (Byrider Vehicle Sales) during any particular calendar month.
You may only provide repair services in connection with your Service Center for vehicles purchased from Byrider-branded businesses, unless Byrider Franchising Partners approves in writing for you to service the general public.
Source: Item 16 — (FDD page 56)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees are generally not restricted in terms of the customers they can serve. Byrider does not limit who franchisees may offer goods and services to. Currently, Byrider franchises offer used vehicles for sale, financing, and related products. However, Byrider retains the right to modify the types of authorized goods and services that franchisees must offer.
There are some limitations regarding to whom Byrider franchisees may provide repair services. Unless Byrider Franchising Partners provides written approval to service the general public, franchisees may only provide repair services through their Service Center for vehicles purchased from Byrider-branded businesses.
Additionally, Byrider franchisees face restrictions on selling and assigning retail installment contracts to unaffiliated third parties. Franchisees must obtain Byrider's approval for each sale or assignment to an unaffiliated third party. Furthermore, the contract values of these sales or assignments cannot exceed 20% of the franchisee's Gross Sales (Byrider Vehicle Sales) in any calendar month.