What is included in Byrider's definition of 'Operating Expenses'?

According to Byrider's 2025 Franchise Disclosure Document, Operating Expenses encompass a wide range of costs associated with running a used vehicle sales and finance operation. This definition is important for prospective franchisees as it provides clarity on what expenses are included when evaluating the financial performance of Byrider businesses. Understanding this definition is crucial for accurately interpreting the financial performance representations provided in Item 19 of the FDD.

The FDD specifies that Operating Expenses include both on-site and off-site costs. These costs cover various aspects of the business, such as salaries, commissions, and collection expenses related to managing customer accounts. Additionally, personnel costs, utilities, telephone services, and facilities costs are included, reflecting the expenses of staffing and maintaining the physical location of the business.

Furthermore, the definition extends to policy costs, repair expenses, advertising, royalties, and advertising fund contributions. These items represent ongoing expenses necessary for maintaining compliance, upkeep of vehicles, marketing efforts, and contributions to the Byrider brand. The inclusion of "others" indicates that this list is not exhaustive, and franchisees should be aware that other miscellaneous expenses may also fall under the umbrella of Operating Expenses. This comprehensive definition allows potential franchisees to have a clearer understanding of the costs involved in operating a Byrider franchise.