Who is responsible for operating and funding the two divisions of a Byrider Business?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
A Byrider Franchising Partners' Business includes two divisions: the Byrider sales division and the CNAC finance division. The Byrider sales division operates as a used vehicle retail sales dealership and the CNAC finance division operates as an auto financing provider. The two divisions are distinct elements that will be operated and funded solely by you. Byrider Franchising Partners may allow you to operate the CNAC finance division through a separate entity, but if Byrider Franchising Partners does, such entity will be required to sign the Acceptance and Assumption of Obligations (see Exhibit F). You must also operate a service center at the location of your Business ("Service Center"). The Service Center may only provide repair services for vehicles purchased from Byrider-branded businesses, unless Byrider Franchising Partners approves in writing for the Service Center to provide repair services to the general public. However, if you or your affiliate already operate a Service Center at a Byrider Business, you will not be required to operate another Service Center at your Business, so long as the existing Service Center is located within a reasonable distance to your Business, as determined by Byrider Franchising Partners.
Source: Item 1 — (FDD pages 11–13)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the franchisee is solely responsible for operating and funding both the sales and finance divisions of a Byrider Business. A Byrider Business consists of two distinct divisions: a used vehicle retail sales dealership and an auto financing provider. These divisions must be operated and funded entirely by the franchisee.
Byrider may allow the franchisee to operate the finance division through a separate entity. However, if this is the case, that separate entity will be required to sign an Acceptance and Assumption of Obligations agreement. This ensures that regardless of the business structure, the obligations to Byrider are maintained.
In addition to the sales and finance divisions, franchisees must also operate a service center at their location, exclusively for repairing vehicles sold by Byrider, unless Byrider provides written approval to offer services to the general public. However, if a franchisee or their affiliate already operates a service center within a reasonable distance, as determined by Byrider, they may not be required to operate an additional service center.