What was the median finance revenue for Byrider stores in the third quartile?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| | | |
| | | | | | | | | | | 3,287 | | | 3,339 | Net Income per Vehicle Sold 10 | 1,887 | | 2,039 | |
| Third Quartile = 25 Stores | Third Quartile Average | % Met or Exceed Avg | Third Quartile Median | Fourth Quartile = 25 Stores | Fourth Quartile Average | % Met or Exceed Avg | Fourth Quartile Median | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Annual Vehicle Sales6 | 284 | 259 | Annual Vehicle Sales6 | 221 | 219 | ||||||
| Sales Revenue2,11 | 4,720,736 | 72.57% | 36.00% | 4,382,794 | 73.15% | Sales Revenue2,11 | 3,790,894 | 74.49% | 52.00% | 3,791,281 | 73.96% |
| Finance Revenue3,11 | 1,784,025 | 27.43% | 48.00% | 1,679,517 | 28.03% | Finance Revenue3,11 | 1,298,466 | 25.51% | 44.00% | 1,173,473 | 22.89% |
| Total Revenue4,11 | 6,504,761 | 100.00% | 36.00% | 5,991,712 | 100.00% | Total Revenue4,11 | 5,089,360 100.00% | 56.00% | 5,126,113 100.00% | ||
| Cost of Goods Sold5 | 4,223,671 | 64.93% | 36.00% | 3,854,428 | 64.33% | Cost of Goods Sold5 | 3,421,585 | 67.23% | 48.00% | 3,398,496 | 66.30% |
| Total Gross Profit7 | 2,281,090 | 35.07% | 36.00% | 2,095,379 | 34.97% | Total Gross Profit7 | 1,667,776 | 32.77% | 44.00% | 1,553,104 | 30.30% |
| Total Operating Expense8 | 2,005,546 | 30.83% | 32.00% | 1,800,793 | 30.05% | Total Operating Expense8 | 1,911,733 | 37.56% | 44.00% | 1,897,279 | 37.01% |
| *Net Income from Operations (before taxes)9 | 275,545 | 4.24% | 60.00% | 292,236 | 4.88% | *Net Income from Operations (before taxes)9 | -243,958 | -4.79% | 56.00% | -176,270 | -3.44% |
| Net Income per Vehicle Sold 10 | 971 | 1,131 | Net Income per Vehicle Sold 10 | -1,105 | -807 |
| Third Quartile Average | % Met or | Third Quartile Median | Fourth Quartile Average | % Met or | Fourth Quartile Median | ||
|---|---|---|---|---|---|---|---|
| 284 | 259 | 221 | 219 | ||||
| 971 | 1,131 | Net Income per Vehicle Sold 10 | -1,105 | -807 |
*Does not include revenue or expenses from related warranty reinsurance and real estate holding companies
Notes
Note 1 – All reported numbers were rounded to the nearest whole number, and, therefore, products and quotients of the numbers listed in the information table may reflect marginal rounding differences.
Note 2 – "Sales Revenue" means all revenue derived from the sale of vehicles and does not include Finance Revenue as that term is defined below. It also includes documentation fees that may accompany the sale of a vehicle. Sales Revenue as used in this Item 19 is calculated the same as Gross Sales (Byrider Vehicle Sales) as defined in the Franchise Agreement, except that Sales Revenue includes revenue from the sale of wholesaled vehicles, which are vehicles sold for resale and for which no sales tax is required, and Gross Sales (Byrider Vehicle Sales) under the Franchise Agreement does not.
Note 3 –The sale of a vehicle results in a retail installment contract with principal balance bearing interest due from each customer. "Finance Revenue" means the interest income received from customers in connection with retail installment contracts and collateral protection insurance. Finance Revenue as used in this Item 19 is calculated the same as Gross Receipts (CNAC Collections) as defined in the Franchise Agreement, except that Gross Receipts (CNAC Collections) under the Franchise Agreement and Finance Revenue does not.
Note 4 – "Total Revenue" means Sales Revenue plus Finance Revenue.
Note 5 – "Cost of Goods Sold" means the cost of automobiles sold, vehicle service contract claims, warranty reserve, and interest expense on debt associated with receivables financing.
Note 6 – Annual Vehicle Sales equals retail installment contracts generated at Byrider Businesses generally considered in the marketplace to be "sub prime" credit quality with a value less than the full contract amount.
Note 7 – "Total Gross Profit" is calculated by subtracting Cost of Goods Sold from Total Revenue.
Note 8 – "Operating Expenses" includes on-site and off-site costs associated with the operation of a used vehicle sales and finance operation such as salaries, commissions, collection expenses, personnel costs, utilities, telephone, facilities costs, policy, repair expense, advertising, royalties and advertising fund contribution, and others.
Note 9 – "Net Income from Operations" means Total Gross Profit minus Operating Expenses before any federal or state income tax obligations.
Note 10 – "Net Income per Vehicle Sold" means Net Income from Operations divided by the average Annual Vehicle Sales.
Source: Item 19 — Financial Performance Representations (FDD pages 63–81)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the median finance revenue for stores in the third quartile varies depending on the number of stores included in that quartile. For the group of 25 stores in the third quartile, the median finance revenue was $1,679,517. When the third quartile consisted of 23 stores, the median finance revenue was $1,605,537. For the third quartile consisting of only 2 stores, the median finance revenue was $1,915,162.
These figures represent the midpoint of finance revenue for Byrider stores within the third quartile, meaning half of the stores in this group generated more finance revenue than this amount, and half generated less. Finance revenue is a critical component of Byrider's overall revenue, representing the income derived from financing the vehicle sales to customers.
A prospective franchisee should consider these figures as benchmarks when evaluating the potential financial performance of a Byrider franchise. Understanding the factors that contribute to finance revenue, such as interest rates, loan terms, and the creditworthiness of customers, is essential for maximizing profitability. It is important to note that the number of stores in each quartile can vary, which may impact the median finance revenue.
It would be prudent for potential franchisees to discuss with Byrider the reasons for the differences in median finance revenue across quartiles with different numbers of stores. Further due diligence, including speaking with existing franchisees, is recommended to gain a comprehensive understanding of the factors influencing financial performance.