What triggers the Third Party Financed Sales Fee for a Byrider franchisee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Party Financed Sales Fee").
Bulk Sale of Accounts Fee. You shall pay a fee equal to 1.9% of gross amounts of Byrider-originated consumer retail installment contracts sold to a third party ("Bulk Sale of Accounts Fee").
If you elect (or have previously elected) to pay the MLFR, you will sign the Traditional and Legacy Royalty Fee Addendum (attached as Exhibit J). The Traditional and Legacy Royalty Fee Addendum will provide your Category Designation before you sign.
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 triggered when a franchisee sells or assigns a retail installment contract to an unaffiliated third party at the time of the vehicle sale. This fee is $250 per contract.
However, Byrider franchisees are restricted in the amount of retail installment contracts they can sell or assign to unaffiliated third parties. The contract values, in the aggregate, cannot exceed 20% of the franchisee's Gross Sales 12-month rolling monthly average. Additionally, Byrider's approval of the third party is required, but Byrider will not unreasonably withhold approval.
This fee and the restrictions placed on selling to third parties are important for prospective franchisees to consider. It means that Byrider benefits when franchisees use CNAC for financing, and franchisees are limited in their ability to seek alternative financing options. This could impact a franchisee's profitability and business strategy, especially if they find better financing terms elsewhere.