Under what conditions can a Byrider franchisee sell and assign retail installment contracts to unaffiliated third parties?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Unaffiliated Assignment of Retail Installment Contracts. Franchisee may sell and assign retail installment contracts to unaffiliated third parties (each or collectively "Third Party"); provided, however: (i) Franchisee must obtain Company's approval of the Third Party, which Company shall not unreasonably withhold; and (ii) Franchisee may not sell or assign retail installment contracts with contract values, in the aggregate, of more than 20% of Franchisee's Gross Sales 12-month rolling monthly average.
Source: Item 16 — (FDD page 56)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee may sell and assign retail installment contracts to unaffiliated third parties under specific conditions. These third parties are referred to as "Third Party" in the document.
The primary condition is that the Byrider franchisee must first obtain approval from Byrider for the specific third party they intend to sell or assign the contracts to. Byrider states that it will not unreasonably withhold this approval, suggesting a reasonable process for franchisees to follow.
Additionally, the franchisee cannot sell or assign retail installment contracts if the total contract values exceed 20% of the franchisee's Gross Sales, calculated as a 12-month rolling monthly average. This limitation likely aims to ensure that franchisees maintain a significant portion of their retail installment contracts to benefit from the associated revenue streams and maintain the integrity of Byrider's financial model.