What is included in the calculation of 'Gross Sales (Byrider Vehicle Sales)' for Byrider franchises?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
the Franchisee hereunder. If the Franchisee is a trust, each trustee or beneficiary signing this Agreement shall be jointly or severally liable for all the obligations and duties of the Franchisee hereunder. Notice to or demand upon one Franchisee shall be deemed notice to or demand upon all Franchisees.
3.7 Gross Sales/Gross Receipts.
Gross Sales (Byrider Vehicle Sales). The term "Gross Sales (Byrider Vehicle Sales)" shall mean the full purchase price of all vehicles sold at retail (whether financed or sold for cash), including charges for vehicle service contracts, documentary fees, and all other fees or charges which accompany the sale, minus overallowances given on trade-in vehicles. For example, the customer's purchase price of the vehicle is $10,000 and the customer has a trade in with an actual cash value of $1,000 and assuming no vehicle service contract or other charges. However, the Franchisee offers $1,500 for the trade in. The "overallowance" is the amount offered of $1,500 less the actual cash value of $1,000 equaling $500. Therefore, "Gross Sales (Byrider Vehicle Sales)" in this example is the full purchase price of $10,000 less the overallowance of $500 which equals $9,500. "Gross Sales (Byrider Vehicle Sales)" excludes receipts from "wholesaled vehicles" and all titling fees and
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the calculation of 'Gross Sales (Byrider Vehicle Sales)' includes the full purchase price of all vehicles sold at retail, whether financed or sold for cash. This encompasses charges for vehicle service contracts, documentary fees, and all other fees or charges that accompany the sale. The calculation then subtracts overallowances given on trade-in vehicles.
For example, if a customer purchases a vehicle for $10,000 and trades in a vehicle with an actual cash value of $1,000, but Byrider offers $1,500 for the trade-in, the "overallowance" is $500 (the difference between the offered amount and the actual cash value). In this case, the 'Gross Sales (Byrider Vehicle Sales)' would be $9,500 (the full purchase price of $10,000 less the overallowance of $500).
However, the calculation of 'Gross Sales (Byrider Vehicle Sales)' excludes receipts from wholesaled vehicles, defined as vehicles sold for resale for which no sales tax is required. It also excludes all titling fees and taxes imposed by federal, state, or other governmental authorities directly and collected from customers, provided these fees and taxes are actually paid by the franchisee to the respective governmental authority. This definition is important because Byrider uses 'Gross Sales (Byrider Vehicle Sales)' to calculate royalty fees and advertising fees.