What was 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, consisting of 25 stores, was $2,134. This figure represents the midpoint of reconditioning expenses among the lowest-performing 25% of Byrider stores included in this financial performance representation. Reconditioning expenses are costs associated with preparing vehicles for sale. These costs can include mechanical repairs, body work, detailing, and other services needed to bring a used vehicle up to Byrider's standards.
For a prospective Byrider franchisee, understanding reconditioning expenses is crucial for financial planning. The median provides a more representative figure than the average, as it is less influenced by extremely high or low values. Knowing that half of the stores in the first quartile spent less than $2,134 and half spent more can help a new franchisee budget appropriately for these necessary expenses. It's important to note that these figures are based on a specific group of stores and may not be representative of all Byrider locations.
Franchisees should investigate what factors contribute to reconditioning expenses and how they can manage these costs effectively. Factors such as the age and condition of vehicles acquired, the local market for parts and labor, and the franchisee's own operational efficiency can all impact reconditioning expenses. Byrider may offer training, preferred vendor relationships, or other resources to help franchisees control these costs. Prospective franchisees should inquire about these resources during their due diligence process.
It is also important to consider how these reconditioning expenses relate to other financial metrics, such as vehicle purchase price, gross markup, and overall profitability. A lower reconditioning expense may allow for a higher gross markup or contribute to improved net income. However, it is essential to maintain Byrider's standards for vehicle quality and safety, as this can impact customer satisfaction and long-term business success.