What are the recommended 'best practices' for Byrider franchisees regarding the control of cash down payments, as mentioned in section 5.18?

The 2025 Byrider Franchise Disclosure Document (FDD) defines "Gross Receipts (CNAC Collections)" as all monies received, such as payments from customer accounts, deferred down payments, payments from bulk sale of customer accounts, and including all other amounts received, except cash down payments received prior to delivery of the vehicle. This indicates that cash down payments received prior to vehicle delivery are treated differently from other receipts.

While the FDD specifies what is included in Gross Receipts, it does not detail the specific procedures or 'best practices' a Byrider franchisee should follow for controlling or managing these cash down payments. The document only carves out cash down payments from the definition of Gross Receipts (CNAC Collections).

Therefore, a prospective Byrider franchisee should seek clarification from Byrider regarding the recommended procedures for handling cash down payments received before vehicle delivery. Specifically, they should inquire about how these payments should be recorded, secured, and reconciled, as well as any specific accounting or security protocols Byrider mandates to ensure proper handling of these funds. This information is crucial for maintaining accurate financial records and preventing potential discrepancies or losses.