What investment and effort is required to obtain a Byrider franchise?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
NAC CARNOW ACCEPTANCE COMPANY", "CNAC CARNOW ACCEPTANCE COMPANY plus the design", "BYRIDER" and "BYRIDER plus the design" and the trademarks, service marks, logos, and trade names now or hereafter used in connection with the System (herein called the "Marks").
- 1.4 Grant of Licenses. The Company grants to persons, who meet the Company's qualifications and are willing to undertake the investment and effort, a franchise to establish and operate a business using the System at a specified location(s) and a license to use the Marks in connection therewith.
- 1.5 Agreement to Obtain/Grant Franchise. The Franchisee desires a franchise to establish and operate a business using the System and the Company is willing to grant such a franchise on the terms and conditions hereinafter set forth.
- NOW, THEREFORE, the parties, in consideration of the undertakings and commitments of each party to the other party, hereby agree as follows:
ARTICLE II
ACKNOWLEDGMENTS
To induce the Company to enter into this Agreement the Franchisee acknowledges, warrants and represents as follows.
- 2.1 Independent Investigation. The Franchisee has had the opportunity to conduct an independent investigation of the business opportunity offered hereunder and the terms and provisions of this Agreement. The Franchisee recognizes that the nature of the business described herein may evolve and change over time, that an investment in the franchise involves business risks and that the success of the venture depends primarily upon the Franchisee's business ability and efforts and other factors which are beyond the Company's control and which have nothing to do with the System or the Company's performance of its obligations under this Agreement.
- 2.2 Existing Franchisees. Prior to the execution of this Agreement, the Franchisee had the opportunity to contact all existing franchisees of the Company.
- 2.3 No Representations Regarding Profits of the Franchise. No representations have been made by the Company or by its officers, directors, shareholders, employees or agents, and relied upon by the Franchisee as to future or past income, expenses, sales volume or potential profitability, earnings or income of the business franchised hereby, or any other franchisee, other than information provided in Item 19 of the Company's Franchise Disclosure Document.
- 2.4 No Representations Regarding Profits of the Company or System. No representation or statement has been made by the Company or by its officers, directors, shareholders, employees or agents and relied upon by Franchisee regarding the anticipated income, earnings and growth of the Company or of the System, or the viability of the business opportunity being offered hereunder.
- 2.5 Reservation of Rights by the Company. The Company has certain rights reserved to it to own and operate BYRIDER businesses; to franchise other BYRIDER businesses; and, to otherwise use the System, the Marks, know-how, techniques and procedures.
- 2.6 Different Franchise Agreements. The Company has and reserves the right to grant franchises for the operation of BYRIDER businesses to other franchisees with terms different from this Agreement.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider grants franchises to individuals who meet their qualifications and are prepared to invest both capital and effort into establishing and operating a business using the Byrider system at a specified location. The Byrider system includes a facility for conducting business, a structured approach for selling and servicing used vehicles, a system for financing these vehicles, proprietary computer software, specific design and decor standards, exclusive signage, confidential operating procedures, and methods for managing inventory, costs, collections, record keeping, accounting, personnel, purchasing, service, sales promotion, marketing, and advertising. Byrider retains the right to modify and improve these elements over time.
Furthermore, the Byrider system mandates that all franchisees offer a warranty program with every vehicle sale. The company owns and licenses the use of trademarks and service marks such as "CNAC", "CNAC CARNOW ACCEPTANCE COMPANY", "CNAC CARNOW ACCEPTANCE COMPANY plus the design", "BYRIDER" and "BYRIDER plus the design".
Before entering into a franchise agreement, Byrider requires that franchisees acknowledge they have conducted an independent investigation of the business opportunity and understand the terms of the agreement. Franchisees must recognize that the business may evolve, that the franchise investment involves risks, and that their success depends primarily on their own business abilities and efforts, as well as other factors beyond Byrider's control. Byrider also emphasizes that franchisees have the opportunity to contact existing franchisees and that no representations have been made regarding potential profitability, except as provided in Item 19 of the Franchise Disclosure Document.