At Byrider, we try to outline the auto loan franchise costs as clearly as possible, so our franchisees know exactly what they’re getting into. And while we can’t make guarantees or predictions, we can present you with the facts.
Byrider maintains relationships with numerous national and regional leaders in order to attract capital to our business that benefits our franchisees. Byrider car finance franchise costs include:
- A credit line of approximately 5,000,000 dollars when your portfolio of receivables reaches maturity — normally a three-year time frame.
- The initial franchise fee is 50,000 dollars, with 35,000 dollars required for each additional franchise purchased.
- However, there are many other costs associated with acquiring a suitable location, such as hiring employees, and properly funding your business. As such, the capitalization needed from a new franchisee can easily reach 1 million dollars.
- 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.
Request our Franchise Disclosure Document for more detailed information regarding the fees, contractual relationships with Byrider Franchising, Inc., and the corporately owned units profit experience.
What Do I Get in Return?
When you pay your franchise fee and royalty payments, that money doesn’t simply disappear into thin air. Your used car dealer franchise costs are reinvested in resources that will go a long way toward helping you succeed as a franchisee.
Franchise Support Team
The Franchise Support Team is in place to help you be as successful as possible in your small business franchise. From finance and real estate to training and technology service, Byrider provides complete support for our franchisees so that you can truly provide our customers with better used cars, affordable payments, and better car care to generate maximum profitability.
Formal Training: Training Center & OnTrack
We also provide formal training at the Byrider Training Center in Carmel, Indiana, for sales, service, finance, controller, and management personnel. We also offer regional training at various sites throughout the year. For in-store training, we offer OnTrack an online learning opportunity for personnel with limited time.
Proprietary Dealer Management System: Discover™
This software is the result of over 25 years of experience and has resulted in the sale of more than 1 million cars, and seven billion dollars of retail installment contracts. Upon making the franchise investment, our franchisees can immediately take advantage of Discover™, which fully integrates and automates information gathering from all aspects of the business, including outside sources such as banks and credit bureaus. Learn more here
Marketing, and More! Learn More in Training & Support
What Can I Expect to Make?
Unfortunately, we are unable to provide an accurate representation of the revenue you are able to make with Byrider. But as franchisees can attest to, 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. What we can assure you is that Byrider’s franchise team is fully committed to our franchisee’s success.
Want to learn more about the used car dealer franchise costs and business model? Request our Franchise Disclosure Document