What does the Byrider sales division operate as?
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, a Byrider business has two divisions: the Byrider sales division and the CNAC finance division. The FDD states that the Byrider sales division operates as a used vehicle retail sales dealership. The CNAC finance division operates as an auto financing provider.
For a prospective franchisee, this means that a Byrider franchise encompasses both the sales of used vehicles and the financing of those vehicles. The franchisee will be responsible for operating and funding both divisions independently. This dual operation model is a key aspect of the Byrider franchise system.
It's important to note that while the two divisions are distinct, they are interconnected within the Byrider business model. The FDD specifies that Byrider Franchising Partners may allow the CNAC finance division to operate through a separate entity, but this entity would still be required to sign an agreement assuming certain obligations. Additionally, franchisees must operate a service center at their location, primarily for vehicles sold through Byrider, unless written approval is obtained to service the general public.