What is the purpose of the Third Party Financed Sales Fee for Byrider franchises?

According to Byrider's 2025 Franchise Disclosure Document, the Third Party Financed Sales Fee is a fee that franchisees must pay to Byrider for each vehicle sale where the retail installment contract is sold or assigned to an unaffiliated third party. The fee is $250 per contract. This fee is due at the time of the vehicle sale from the franchisee's dealer entity to the third party.

This fee applies when a Byrider franchisee chooses to finance a vehicle sale through a third-party lender instead of Byrider's affiliated financing entity, CNAC. Byrider franchisees are allowed to sell and assign retail installment contracts to unaffiliated third parties, provided that Byrider approves the third party and the contract values do not exceed 20% of the franchisee's 12-month rolling monthly average Gross Sales.

The Third Party Financed Sales Fee is in addition to other fees that Byrider franchisees must pay, such as the Royalty Fee and Advertising Fees. It is important for prospective franchisees to understand all of the fees that they will be required to pay before investing in a Byrider franchise.