What does 'Net Income per Vehicle Sold' mean for a Byrider franchise, and how is it calculated?

According to Byrider's 2025 Franchise Disclosure Document, 'Net Income per Vehicle Sold' represents the Net Income from Operations divided by the average Annual Vehicle Sales. Net Income from Operations is Total Gross Profit minus Operating Expenses before any federal or state income tax obligations. Total Gross Profit is calculated by subtracting Cost of Goods Sold from Total Revenue. Cost of Goods Sold includes the cost of automobiles sold, vehicle service contract claims, warranty reserve, and interest expense on debt associated with receivables financing. Total Revenue is Sales Revenue plus Finance Revenue. Sales Revenue is all revenue derived from the sale of vehicles, including documentation fees, but excludes Finance Revenue. Finance Revenue is the interest income received from customers in connection with retail installment contracts and collateral protection insurance. Operating Expenses include 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. 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.

For a prospective Byrider franchisee, this metric provides insight into the profitability generated from each vehicle sold, after accounting for all associated costs and expenses. It helps to evaluate the efficiency of the franchise's operations and its ability to generate profit from its sales. The average Net Income per Vehicle Sold for 92 franchise locations was $1,440, while the median was $1,337. For 8 franchise locations, the average Net Income per Vehicle Sold was $3,049, while the median was $2,628. For 100 franchise locations, the average Net Income per Vehicle Sold was $1,572, while the median was $1,417.

It is important to note that these figures do not include revenue or expenses from related warranty reinsurance and real estate holding companies, which could impact the overall financial performance of the franchise. A prospective franchisee should investigate these related entities to gain a comprehensive understanding of the potential profitability of a Byrider franchise. Byrider Franchising Partners will provide written substantiation for this financial information to prospective franchisees upon reasonable request.