How much does a franchise cost?
The initial franchise fee is 50,000 dollars, with 35,000 dollars required for each additional franchise purchased. There are many other costs that are associated with acquiring a suitable location, including staffing and proper funding. Since your franchise could ultimately generate a $10 million portfolio of automotive receivables, it is important to understand that the capitalization needed from a new franchisee can easily reach 1 million dollars.
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.
What is the royalty fee?
The monthly royalty fee is 2.5 percent of gross sales (vehicle sales price) and one percent of gross receipts (repayment of debt). Monthly royalties are capped at 12,000 dollars. Royalty caps decline with the opening of additional locations.
Will I get marketing and advertising support?
All franchisees are members of the Byrider Advertising Group Inc. For a monthly fee of 1,500 dollars, an entire marketing and advertising package can be developed and made available to you. This package includes research-based marketing strategies as well as targeted advertising materials, including TV, radio, print, direct mail, outdoor, and point-of-purchase materials. We also provide music and our national sponsorship of Tony Stewart Motorsports. The monthly fee entitles members to unlimited consultation with the staff of Byrider Advertising Group Inc.
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?
Other than the information contained in our Franchise Disclosure Document, Byrider does not make revenue or profit forecasts for any prospective franchise location. Results are subject to far too many variables such as market demographics, competition, the level of capitalization in the business, and the effectiveness of management in executing the business plan to provide an accurate prognosis.
Do you provide training?
Byrider provides a wide array of training opportunities to meet every operational need. Formal training is conducted at the Byrider Training Center in Carmel, Indiana, for sales, service, finance, controller, and management personnel. In addition, regional training is conducted at various sites throughout the year. For in-store training, we offer OnTrack, an online learning opportunity for personnel with limited time. Operations manuals are provided for your reference when you sign a franchise agreement. In addition, expert advice is provided regularly by franchise consultants and functional experts.
Do I need previous experience in automotive sales?
No! We actively seek qualified franchisees from a wide variety of backgrounds. Your ability to manage a team and keep them focused on the fundamentals of the used car business is the greatest indicator of your potential success. We provide the training you need in the technical aspects of your small car franchise, and in using our tremendous software model. Your drive and the drive of your staff will determine the level of your success.
How does Byrider differ from its competition?
Byrider has defined the dealer-carried finance, used car business for more than 20 years. We do everything we can to outclass the competition. Byrider is the largest company in the used car market industry and holds the greatest market share and brand awareness. Our commitment to offer a better car, service under company warranty, and superior customer care is what sets us apart.
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?
Byrider franchisees meet three times each year. In addition to an annual convention in November — featuring an update on the state of the company, an opportunity to participate in a variety of instructional seminars, and a chance to network with fellow dealers — franchisees gather in early spring and late summer. The spring and summer meetings address new information, procedures, and systems provided by Byrider Franchising. They also serve as forums for policy development for the Dealer’s Association, and the sharing of ideas for process improvement and profit maximization.
What are the steps to become a franchisee?
Your first step is making a trip to our corporate headquarters in Carmel, Indiana, for Discovery Day. This is a day for you to meet the senior management team, learn insightful information from each department head, and view the phenomenal expertise available to you within the Byrider franchising system. This is your opportunity to learn everything you can about this small business franchise and be able to ask questions of some of the highest-skilled and most-experienced people in this industry. When you are approved as a franchisee, we will prepare franchise agreement documents along with an area development agreement if you wish to gain rights to a larger territory for additional store development. Once you sign a franchise agreement, we will help you through the steps of finding financing for your new venture, acquiring the appropriate real estate, gaining the knowledge to successfully operate your new business, and helping you open your new unit.
Who do I contact if I have questions?
Feel free to call:
Vice President, Development
12802 Hamilton Crossing Blvd.
Carmel, IN, 46032