What is the Third Party Financed Sales Fee that a Byrider franchisee must pay?

According to Byrider's 2025 Franchise Disclosure Document, franchisees must pay a Third Party Financed Sales Fee of $250 per contract. This fee applies each time a franchisee sells or assigns a vehicle retail installment contract from their dealer entity to an unaffiliated third party. The fee is due at the time of the vehicle sale.

This fee is in addition to other fees that Byrider franchisees must pay, such as the Royalty Fee and the Bulk Sale of Accounts Fee. It is important to note that franchisees may only sell and assign retail installment contracts to unaffiliated third parties if they obtain Byrider's approval and the contract values do not exceed 20% of the franchisee's Gross Sales 12-month rolling monthly average.

For a prospective Byrider franchisee, this means that each time they finance a vehicle sale through a third party, they will incur a $250 fee. This could impact profitability, especially if a significant portion of sales are financed through third parties. Franchisees should factor this fee into their financial projections and business planning. It is also important to understand the restrictions on selling and assigning retail installment contracts to third parties, as exceeding the 20% limit could result in penalties or other consequences.