What is the 'Third Party Financed Sales Fee' for Byrider franchises intended to cover?
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, the Third Party Financed Sales Fee is applicable when a franchisee sells and assigns retail installment contracts to unaffiliated third parties. This is allowed, provided Byrider approves the third party and the contract values do not exceed 20% of the franchisee's Gross Sales 12-month rolling monthly average.
Specifically, the Third Party Financed Sales Fee is $250 per contract. This fee is charged each time a vehicle is sold and the associated contract is assigned from the Byrider dealer entity to a third party. The fee is due at the time of the vehicle sale.
This fee represents an additional cost for Byrider franchisees who choose to finance vehicle sales through third-party arrangements. Franchisees should carefully consider this fee when evaluating the profitability of selling retail installment contracts to third parties versus other financing options.