What is the median reconditioning expense for Byrider stores in the first quartile?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
r 31 in 2022 and 2023) of Stores Open 24+ Months as of 12/31/2023
STORE RESULTS BROKEN DOWN INTO QUARTILES
| First Quartile = 25 Stores | Average | Exceed Avg. | Median | Second Quartile = 25 Stores | Average | Exceed Avg. | Median |
|---|---|---|---|---|---|---|---|
| Vehicle Purchase Price 26 | $7,166 | 52.00% | $7,162 | Vehicle Purchase Price 26 | $6,579 | 48.00% | $6,72 |
| Reconditioning Expense 27 | $2,395 | 64.00% | $2,134 | Reconditioning Expense 27 | $2,214 | 48.00% | $2,287 |
| Down Payment (cash/trade/deferred) 28 | $2,597 | 36.00% | $2,332 | Down Payment (cash/trade/deferred) 28 | $2,552 | 48.00% | $2,457 |
| Gross Mark-Up 29 | $7,148 | 52.00% | $7,190 | Gross Mark-Up 29 | $6,942 | 56.00% | $7,092 |
| Installment Contract Amount Financed 32 | $15,484 | 52.00% | $15,661 | Installment Contract Amount Financed 32 | $14,388 | 56.00% | $14,621 |
| Interest Rate 33 | 20.80% | 44.00% | 20.35% | Interest Rate 33 | 21.45% | 48.00% | 21.23% |
| Monthly Payment Equivalent Amount 34 | $495 | 44.00% | $487 | Monthly Payment Equivalent Amount 34 | $480 | 40.00% | $476 |
| Discount Rate 30 | 29.28% | 64.00% | 30.00% | Discount Rate 30 | 29.58% | 76.00% | 30.00% |
| Average Trade Percentage 37 | 21.55% | 40.00% | 17.48% | Average Trade Percentage 37 | 20.07% | 44.00% | 18.40% |
| Average CoBuyer Percentage 38 | 18.65% | 40.00% | 17.39% | Average CoBuyer Percentage 38 | 17.46% | 48.00% | 15.89% |
| All Delinquency (% of portfolio 1 or more days delinquent) 35 | 8.96% | 68.00% | 8.36% | All Delinquency (% of portfolio 1 or more days delinquent) 35 | 10.34% | 56.00% | 10.02% |
| Net Charge Off (as % of Portfolio Amount) 39 | 0.90% | 52.00% | 0.89% | Net Charge Off (as % of Portfolio Amount) 39 | 1.10% | 48.00% | 1.11% |
| Static Pool Charge Off (Originations from 2 Years Prior) 40 | 18.26% | 60.00% | 16.32% | Static Pool Charge Off (Originations from 2 Years Prior) 40 | 23.37% | 52.00% | 23.04% |
| Average Cash on Cash (Originations from 2 Years Prior) 41 | 117.78% | 52.00% | 119.92% | Average Cash on Cash (Originations from 2 Years Prior) 41 | 113.13% | 56.00% | 114.10% |
| Warranty Expense/Vehicle Sold 31 | $708 | 40.00% | $735 | Warranty Expense/Vehicle Sold 31 | $780 | 52.00% | $771 |
| Average Monthly Marketing Expenses 42 | $7,082 | 44.00% | $7,394 | Average Monthly Marketing Expenses 42 | $7,652 | 64.00% | $6,816 |
| Average Monthly Operating Expenses 36 |
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 reconditioning expense for stores in the first quartile is $2,134, based on a sample of 25 stores. This figure represents the midpoint of reconditioning expenses among the lowest-performing 25% of Byrider locations included in this Item 19 representation. Reconditioning expenses are costs associated with preparing vehicles for sale. These costs can include mechanical repairs, body work, cleaning, and detailing.
For a prospective Byrider franchisee, understanding the median reconditioning expense in the first quartile is crucial for financial planning. It provides a benchmark for what to expect in terms of vehicle reconditioning costs during the initial stages of operation, particularly if the franchisee's store performs within the lower range of the franchise system. While the average reconditioning expense for the first quartile is $2,395, the median of $2,134 may be a more representative figure, as it is less influenced by outliers with exceptionally high expenses.
It's important to note that these figures are based on a specific group of stores and may not be indicative of future performance. Factors such as location, market conditions, and management practices can significantly impact reconditioning expenses. A prospective franchisee should consider these variables and conduct thorough due diligence to assess the potential reconditioning costs for their specific location. Reviewing the footnotes in the FDD related to reconditioning expenses can provide further clarity on what costs are included and how they are calculated.
Furthermore, the FDD provides additional financial performance metrics for stores in other quartiles, including vehicle purchase price, gross mark-up, and operating expenses. Analyzing these metrics in conjunction with reconditioning expenses can provide a more comprehensive understanding of the financial dynamics of a Byrider franchise. Comparing the first quartile's performance with that of higher-performing quartiles can also highlight areas for improvement and potential strategies for increasing profitability.