Risk Score
Pending analysis
Investment Range
$947,000 - $1,577,500
Franchise Fee
$35,000
Min Cash Required
$650,000
Total US Locations
104
Business Summary
Byrider Franchising Partners operates businesses that combine used vehicle retail sales with auto financing. These Byrider businesses include two main divisions: a Byrider sales division, which functions as a used vehicle dealership, and a CNAC finance division, which provides auto financing for vehicle purchases. Additionally, each Byrider business must operate a service center that primarily offers repair services for vehicles sold by Byrider-branded businesses, though Byrider Franchising Partners may approve general public service in writing.
Corporate History
Byrider Franchising Partners, LLC was formed on August 5, 2024, and became the franchisor for the Byrider franchise program on September 5, 2024, after acquiring most assets from its predecessor, Byrider Franchising, LLC. The predecessor, Byrider Franchising, originally began offering Byrider franchises in May 1989 and continued until September 2024. Additionally, related companies of the predecessor operated Byrider franchises from 1995 until 2024.
Financial Overview
Investment Range
$947,000 - $1,577,500
Franchise Fee (Low)
$35,000
Franchise Fee (High)
$60,000
Minimum Cash Required
$650,000
Royalty %
1.9%
Marketing %
2%
Equipment Costs (Low)
$10,500
Equipment Costs (High)
$210,000
Working Capital
$925,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Byrider Franchising Partners acknowledges in its Special Risks section that its financial condition, as reflected in its financial statements, calls into question its ability to provide services and support to franchisees. The independent auditor's report, while issuing an unqualified opinion, is also required to conclude whether conditions or events, considered in the aggregate, raise substantial doubt about Byrider Franchising Partners' ability to continue as a going concern, though no such doubt is explicitly stated in the opinion itself.
Financing Details
Byrider Franchising Partners does not offer any direct or indirect financing to its franchisees. Additionally, Byrider Franchising Partners does not guarantee any notes, leases, or other obligations for its franchisees.
Performance Metrics
Total US Locations
104
Franchised Units
86
Corporate Units
18
Avg Square Footage
4,750
Franchising Since
1989
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
No
Litigation Count
7
Litigation Summary
Byrider Franchising Partners has been involved in seven disclosed litigation cases. Historically, the predecessor company, J.D. Byrider Systems, Inc., faced lawsuits from state Attorneys General in Ohio (2005) and Kentucky (2004) regarding alleged violations of consumer sales practices and deceptive financing. Both cases were settled with consent judgments, requiring the company and its franchisees to take remedial steps and pay significant sums, including $300,000 from the predecessor in Kentucky and $2.7 million from a franchisee for customer restitution. More recently, Byrider Franchising (the predecessor) was involved in several arbitrations. In 2017, former franchisees alleged fraudulent inducement and breach of contract; this case settled in 2018 for $500,000 paid by Byrider Franchising. In 2019, Byrider Franchising filed arbitration against former franchisees for breach of agreement, with the franchisees filing counterclaims; this settled in 2020 for $25,000 lump sum and $169,000 in installments paid by the franchisee. In 2018, a former franchisee sought indemnification from Byrider Franchising for a Massachusetts Attorney General lawsuit, which settled in 2020 with Byrider Franchising agreeing to pay $750,000 into escrow and one-third of the franchisee's attorneys' fees. In 2020, Byrider Franchising filed arbitration against former franchisees for continuing operations after termination, settling in 2021 with the franchisees paying $1,500,000. Currently, there is ongoing legal action. In 2023, Byrider Franchising initiated arbitration against entities owned by Randall Barson for damages due to breach of their Franchise Agreements, with an amended statement filed in July 2024.
Bankruptcy History
Byrider Franchising Partners has no bankruptcy history to report.
Agreement Terms
Initial Term
7 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, Byrider Franchising Partners franchisees must request a successor term, comply with all material terms and conditions of their current Franchise Agreement and financial obligations, and make necessary expenditures to upgrade, remodel, and redecorate their business location to meet current system standards. Franchisees must also sign the then-current franchise agreement, which may have materially different terms, and execute a general release of claims against Byrider Franchising Partners. Additionally, they must have settled or be actively defending any pending claims or demands from governmental agencies.
Training & Support Program
Franchisor Assistance
Byrider Franchising Partners provides extensive support to its franchisees. Before opening, Byrider Franchising Partners assists with site approval, provides specifications for building, equipment, and signs, offers access to confidential operations manuals, facilitates initial training, and helps with technology system installation and lease review. After opening, ongoing support includes on-site assistance for the first business and discretionary assistance for additional locations, periodic inspections with operational advice, approval for new products and services, indemnification, advertising guidance and approval, and hosting one to three annual meetings. Franchisees also receive support for the proprietary technology system, including maintenance and updates, access to Customer Relations Management tools, and additional training programs available through their corporate office or online.
Initial Training Hours
80
Training Location
Carmel, Indiana headquarters or selected regional sites
Ongoing Support
After opening, Byrider Franchising Partners provides several ongoing support services. This includes on-site assistance for the first business, and discretionary assistance for additional locations. Franchisees receive periodic inspections and operational advice, approval for new products and services, indemnification, advertising guidance and approval, and participate in one to three annual meetings. Byrider Franchising Partners also supports the technology system, including maintenance and updates for proprietary software and access to Customer Relations Management tools. Additional training programs are offered at the corporate office, regional sites, or through webinars, with online certification available via their learning management system.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Supervisory
Territory Type
Non-Exclusive
Territory Size Requirements
For a single Byrider business, Byrider Franchising Partners typically grants a Protected Territory with a radius of 2 miles surrounding the business location. The boundaries can also be defined by zip codes, streets, landmarks, or county lines. If a franchisee enters an Area Development Agreement, the protected territory will consist of the specific counties or cities agreed upon for development.
Staffing Notes
Byrider Franchising Partners requires that each franchise location be under the direct, on-location supervision of a full-time employee designated as the 'Designated Manager.' This manager is responsible for the day-to-day operations and must successfully complete Byrider Franchising Partners' Initial Training Program before the business opens. If the owner does not personally participate full-time, a Designated Manager is required for each business location. All employees of the franchisee must also complete training, and the franchisee or their managers are responsible for providing ongoing training as necessary. Additionally, the Designated Manager and other managerial or supervisory personnel, as well as those receiving special training, may be required to sign confidentiality agreements.