What is the required action for a Byrider franchisee before selling retail installment contracts to a Third Party?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2/ You may only sell and assign retail installment contracts to unaffiliated third-parties if (a) you obtain Byrider Franchising Partners' approval of the unaffiliated third-party prior to each sale or assignment, and (b) you may not sell or assign retail installment contracts with contract values, in the aggregate, of more than 20% of the Gross Sales (Byrider Vehicle Sales) during any particular calendar month.
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee must obtain approval from Byrider Franchising Partners before selling or assigning retail installment contracts to unaffiliated third parties. This approval is required for each sale or assignment. Byrider states that it will not unreasonably withhold this approval.
In addition to obtaining approval, the franchisee is limited in the amount of contracts they can sell or assign. The aggregate contract values of retail installment contracts sold or assigned to unaffiliated third parties cannot exceed 20% of the franchisee's Gross Sales (Byrider Vehicle Sales) during any particular calendar month.
These stipulations ensure that Byrider maintains some oversight and control over the franchisee's financial dealings, particularly concerning the sale of customer contracts to outside parties. This may protect the brand's reputation and financial stability. Franchisees should factor in the time and potential limitations associated with obtaining approval for each sale when considering this option.