The Process
Byrider is the nation's leading used car and finance franchise
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Deciding to start a used car dealer franchise is a huge decision, and one that shouldn’t be made lightly. One of the first questions you’ll ask yourself is: “how do I get started?” While starting a franchise might be easier than building a new business from scratch, that doesn’t mean the process isn’t daunting. From learning the industry to the investment cost, pre-opening support, your grand opening, and continuing education to stay abreast of industry trends, there’s a lot to wrap your mind around when you start a franchise. We’re here to make the process a little less daunting, and ease your transition into our franchise family.
1 INITIAL INQUIRY +
After reviewing our website, the first step will contact us in whatever means you feel appropriate. We will get back to your right away to discuss why a used car franchise may be the right next career move for you
2 PREQUALIFICATION CALL +
Once we receive your inquiry, we will most likely set up a call. Because our business is set up around relationships, we believe this is a vital part of our process.
3 Discovery Day +
The next 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.
4Franchisee Agreement
Development Agreement +
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.
5 TRAINING +
Once you do open your business, you won’t simply be floating out there in the auto world by yourself, disconnected from the rest of the franchise community. 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.
Franchise Details
When you start an auto loan franchise with Byrider, you will need 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. 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.
It’s also important to note the monthly royalty fee, which is 2.5% of gross sales (vehicle sales price) and 1% of gross receipts (repayment of debt). Monthly royalties are capped at 12,000 dollars. Royalty caps decline with the opening of additional locations.
Byrider Franchising does not directly provide, or guarantee, any financing to its franchisees, but 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.
Other than the information contained in our Franchise Disclosure Document, Byrider does not make revenue or profit forecasts when you start an auto loan franchise with us. 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.
The Franchise Disclosure Document provides more detailed information regarding the fees, contractual relationships with Byrider Franchising, Inc., and the corporately-owned units profit experience. Please refer to that information for a more detailed understanding of the franchise offering and business model.
Be a part of helping people
Be the consumer choice helping people get a fresh opportunity to finance and own a quality vehicle.
