Why is it important to collect payments for Byrider?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
axes imposed by federal, state, or other governmental authority directly and collected from customers so long as it is actually paid by
Franchisee to such governmental authority. Wholesaled Vehicles are defined as vehicles sold for resale and for which no sales tax is required.
Gross Receipts (CNAC Collections). The term "Gross Receipts (CNAC Collections)" shall mean all monies received, such as payments from customer accounts, deferred down payments, payments from bulk sale of customer accounts, and including all other amounts received, except cash down payments received prior to delivery of the vehicle.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, collecting payments is crucial because Byrider franchisees must remit a percentage of their gross receipts from CNAC collections to Byrider as part of their royalty fees. Gross Receipts (CNAC Collections) are defined as all monies received, such as payments from customer accounts, deferred down payments, and payments from bulk sales of customer accounts, excluding cash down payments received prior to vehicle delivery.
After the first year of operation, Byrider franchisees must pay 1.90% of their Gross Receipts (CNAC Collections) as part of their royalty fee. However, if a franchisee has entered into three or more Franchise Agreements with Byrider, this percentage may differ.
Therefore, diligently collecting payments is essential for Byrider franchisees to accurately calculate and remit the correct royalty fees to Byrider. Failure to collect payments effectively would not only reduce the franchisee's revenue but also impact the royalty fees owed to Byrider, potentially leading to a breach of the franchise agreement.