What page of the Byrider Franchise Agreement contains the definition of 'Gross Sales/Gross Receipts'?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
the Franchisee hereunder. If the Franchisee is a trust, each trustee or beneficiary signing this Agreement shall be jointly or severally liable for all the obligations and duties of the Franchisee hereunder. Notice to or demand upon one Franchisee shall be deemed notice to or demand upon all Franchisees.
3.7 Gross Sales/Gross Receipts.
Gross Sales (Byrider Vehicle Sales). The term "Gross Sales (Byrider Vehicle Sales)" shall mean the full purchase price of all vehicles sold at retail (whether financed or sold for cash), including charges for vehicle service contracts, documentary fees, and all other fees or charges which accompany the sale, minus overallowances given on trade-in vehicles. For example, the customer's purchase price of the vehicle is $10,000 and the customer has a trade in with an actual cash value of $1,000 and assuming no vehicle service contract or other charges. However, the Franchisee offers $1,500 for the trade in. The "overallowance" is the amount offered of $1,500 less the actual cash value of $1,000 equaling $500. Therefore, "Gross Sales (Byrider Vehicle Sales)" in this example is the full purchase price of $10,000 less the overallowance of $500 which equals $9,500. "Gross Sales (Byrider Vehicle Sales)" excludes receipts from "wholesaled vehicles" and all titling fees and taxes imposed by federal, state, or other governmental authority directly and collected from customers so long as it is actually paid by
Franchisee to such governmental authority. Wholesaled Vehicles are defined as vehicles sold for resale and for which no sales tax is required.
Gross Receipts (CNAC Col
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the definition of 'Gross Sales/Gross Receipts' can be found on page 101. This definition is crucial for franchisees as it dictates how royalties and other fees are calculated.
The FDD provides a detailed breakdown of what constitutes 'Gross Sales (Byrider Vehicle Sales),' specifying that it includes the full purchase price of vehicles sold at retail, charges for vehicle service contracts, documentary fees, and other related charges. It also clarifies that overallowances on trade-in vehicles are deducted from the gross sales amount. For example, if a customer purchases a vehicle for $10,000 and receives a $1,500 trade-in allowance when the actual cash value is $1,000, the overallowance is $500, making the gross sales $9,500. The definition explicitly excludes receipts from wholesaled vehicles, titling fees, and taxes collected from customers and remitted to governmental authorities.
Furthermore, the FDD defines 'Gross Receipts (CNAC Collections)' as all monies received, including payments from customer accounts, deferred down payments, and payments from bulk sales of customer accounts. However, it excludes cash down payments received before the vehicle delivery. Understanding these definitions is essential for Byrider franchisees to accurately calculate and report their gross sales and gross receipts, ensuring compliance with the franchise agreement and avoiding potential disputes with Byrider.