What are the two divisions included in a Byrider Business?
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 consists of two distinct divisions: the Byrider sales division and the CNAC finance division. The Byrider sales division functions as a used vehicle retail sales dealership, while the CNAC finance division operates as an auto financing provider. These divisions are structured as separate elements, with the franchisee responsible for independently operating and funding each one.
Byrider may permit a franchisee to operate the CNAC finance division through a separate legal entity. If this is the case, that entity must sign an Acceptance and Assumption of Obligations agreement. In addition to these two divisions, franchisees are required to operate a service center at the same location as their Byrider business. This service center primarily provides repair services for vehicles sold through Byrider-branded businesses.
However, Byrider may grant written approval for the service center to offer repair services to the general public. An exception to the service center requirement exists if the franchisee or an affiliate already operates a service center within a reasonable distance of the Byrider business, as determined by Byrider. In this case, the franchisee is not required to establish a separate service center.