Are You Looking to Expand Beyond Your New-Car Dealership Portfolio?
Byrider offers dealer principals an opportunity to expand beyond traditional new-car retail, reach an underserved customer segment, and add a vertically integrated used-vehicle sales, finance, and service platform to their portfolio.
Here is why the Byrider model can complement an established dealer group
- Leverage existing infrastructure. Your trade-in and auction relationships, reconditioning capabilities, automotive experience, and vendor network may support the development of a Byrider dealership.
- Build recurring revenue. In addition to vehicle sales, the model allows franchisees to build a portfolio of automotive receivables that generates collections over time.
- Reach and retain more customers. Byrider helps serve customers who may not qualify through traditional financing channels, allowing your organization to capture business that might otherwise leave the dealership group.
- Operate outside OEM requirements. The Byrider model is not subject to manufacturer allocation programs, stair-step incentives, or factory image requirements, giving owners greater control over inventory, capital, and operating strategy.
- Leverage your management team. An established bench of automotive leaders can provide experienced operators for an additional dealership platform and support future multi-unit growth.
Byrider provides the brand, centralized underwriting through CNAC, technology, training, marketing resources, and ongoing support to help experienced dealers enter and scale within the dealer-carried finance segment.
How much does a franchise cost?
The initial franchise fee is $60,000 for the first location and $35,000 for each additional location purchased. Franchisees should also plan for costs associated with securing and developing a suitable dealership location, vehicle inventory, staffing, training, technology, and properly funding the business and its receivables portfolio.
Total investment and capitalization requirements vary based on the location, facility, market, development needs, and anticipated portfolio growth. Please refer to Item 7 of Byrider’s current Franchise Disclosure Document for the complete estimated initial investment range and additional details regarding startup costs.
Do you offer financing?
While Byrider Franchising does not directly provide, or guarantee, any financing to its franchisees, we do maintain relationships with many banks and lending institutions that are familiar with both the financing of subprime automotive receivables and our particular business model. We are happy to help make introductions to those lenders when you start with one of our car dealerships.
What is the royalty fee?
The current ongoing Byrider royalty fees are 2.5% of gross vehicle sales and 1% of collections.*
*Please refer to the current Franchise Disclosure Document for complete details regarding royalty fees, royalty fee caps and other ongoing obligations.*
Will I get marketing and advertising support?
Yes. Byrider franchisees receive access to a comprehensive marketing portal featuring professionally developed creative materials designed to build brand awareness and drive dealership traffic. Available resources may include digital, social media, video, radio, print, direct mail, outdoor, and point-of-purchase materials.
Franchisees also receive guidance from Byrider’s dedicated marketing team, including support with marketing strategy, campaign planning, and the effective use of available creative resources in their local markets. Please refer to the current Franchise Disclosure Document for details regarding required marketing contributions, fees, and related obligations.
How do I know if the location I want is available?
Byrider can provide guidance on areas where a used vehicle dealership would be viable. We will assist you in considering a variety of factors, including the demographics of the location, accessibility, daily traffic counts, competition, rent and construction costs, and whether there is a sufficient residential and commercial presence to support your used car franchise.
How much money can I make?
Byrider does not make revenue, profit, or financial performance projections outside of the financial performance representations provided in Item 19 of our current Franchise Disclosure Document. Actual results vary based on numerous factors, including market demographics, competition, capitalization, operating costs, local economic conditions, and management’s execution of the business model.
Please refer to Item 19 of Byrider’s current Franchise Disclosure Document for all financial performance representations related to the franchise opportunity.
Do you provide training?
Yes. Byrider provides comprehensive training across the key areas of dealership operations, including sales, service, finance, accounting, compliance, and management. Formal training is conducted at Byrider Headquarters in Carmel, Indiana, with additional regional, in-store, and online learning opportunities available through our online LMS as well.
Franchisees also receive access to detailed operating resources and ongoing guidance from Executive Franchise Consultants and functional experts. Whether you are an experienced dealer or entering the automotive industry for the first time, Byrider’s training program helps prepare you and your team to operate the complete dealership and finance model.
Do I need previous experience in automotive sales?
No. Byrider welcomes qualified franchisees from a variety of professional backgrounds, including experienced automotive dealers and business leaders entering the industry for the first time. Strong leadership, team development, financial management, and the ability to execute a proven operating model are important factors in successfully operating a Byrider dealership.
Byrider provides comprehensive training in vehicle sales, financing, service, compliance, dealership operations, and our integrated technology platform. While no specific background guarantees success, engaged ownership, effective management, sufficient capitalization, and a strong operating team are essential to building the business.
How does Byrider differ from its competition?
Byrider combines used-vehicle sales, financing, and service within one vertically integrated franchise model. Centralized underwriting through CNAC, an end-to-end technology platform, established operating systems, and ongoing franchise support give owners greater control and visibility across their dealership operations.
Our focus on quality vehicles, financing solutions for customers with credit challenges, warranty-backed service, and continued customer care helps distinguish the Byrider experience. Franchisees also benefit from an established national brand, comprehensive training, marketing resources, and a network built through decades of experience in the used-vehicle and dealer-carried finance industry.
How long does it take to open a new store?
On average, it takes between nine to 12 months to open a used car franchise. Many factors influence the timing for development of a dealership. Your commitment to finding and developing a site is the main key to opening a store quickly. Your ability to obtain financing will help to limit delays as well.
Are there annual meetings?
Yes! Byrider hosts multiple franchisee meetings and collaborative events throughout the year, including 20 Groups, our Annual Convention, composite reviews, training sessions, and other opportunities to connect with Byrider leadership, functional experts, and fellow franchisees.
These meetings provide opportunities to review performance, share best practices, learn about new programs and systems, discuss industry trends, and strengthen relationships across the Byrider franchise network.