Does Byrider have the right to disapprove a Third Party for retail installment contracts?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
der Franchised Locations.
Unaffiliated Assignment of Retail Installment Contracts. You may sell and assign retail installment contracts to unaffiliated third parties (each or collectively "Third Party"); provided, however: (i) you must obtain our approval of the Third Party, which we shall not unreasonably withhold; and (ii) you may not sell or assign retail installment contracts with contract values, in the aggregate, of more than 20% of your Gross Sales 12-month rolling monthly average.
Third Party Financed Sales Fee. You shall pay to us $250 per contract sold or assigned at time of vehicle sale from your dealer entity to Third Party ("Third P
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider does have the right to approve or disapprove a third party for retail installment contracts. A franchisee may sell and assign retail installment contracts to unaffiliated third parties, but they must first obtain Byrider's approval of the third party. Byrider states that it will not unreasonably withhold this approval.
However, there are limitations to this ability. Franchisees may not sell or assign retail installment contracts with contract values, in the aggregate, of more than 20% of their Gross Sales 12-month rolling monthly average. This condition ensures that franchisees do not become overly reliant on third-party financing and maintain a significant portion of their business through Byrider's affiliated CNAC entity or other approved methods.
Traditional Franchisees also pay a Third Party Financed Sales Fee of $250 per contract sold or assigned at the time of the vehicle sale from their dealer entity to the Third Party. This fee is specifically for retail installment contracts assigned to an approved unaffiliated third-party, with contract values not exceeding 20% of the franchisee's Gross Sales 12-month rolling monthly average.