What is included in 'Finance Revenue' for a Byrider franchise, as defined in Item 19?

According to Byrider's 2025 Franchise Disclosure Document, 'Finance Revenue' is defined as the interest income received from customers in connection with retail installment contracts and collateral protection insurance. This revenue is a key component of a Byrider franchise's total income. It is important to note that the Finance Revenue as used in Item 19 is calculated the same as Gross Receipts (CNAC Collections) as defined in the Franchise Agreement, with one exception. Gross Receipts (CNAC Collections) under the Franchise Agreement and Finance Revenue does not include revenue or expenses from related warranty reinsurance and real estate holding companies.

For a prospective franchisee, understanding Finance Revenue is crucial because it represents a significant portion of the business's earnings. For example, the average Finance Revenue for 100 franchise locations was $1,903,067, representing 27.04% of total revenue. Similarly, for 92 franchise locations, the average Finance Revenue was $1,869,223, accounting for 26.78% of total revenue. These figures highlight the importance of finance operations in the Byrider business model.

It's also important to note that the financial performance representations provided by Byrider are based on historical data from existing outlets and may not be indicative of future performance. Byrider will provide written substantiation for this financial information to prospective franchisees upon reasonable request. Prospective franchisees should carefully review this information and consider their own circumstances and market conditions when evaluating the potential financial performance of a Byrider franchise.