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When you start an auto loan franchise with Byrider, depending on what path you choose you may need a credit line of approximately 3,000,000 dollars when your portfolio of receivables reaches maturity — normally a three-year time frame.
The initial franchise fee is 60,000 dollars, with 40,000 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 traditional Byrider franchise could ultimately generate up to 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 depending on the Byrider option you choose.
It’s also important to note the traditional Byrider program monthly royalty fee, which is $5,500/month in Year 1, and is 1% of gross sales (minimum $7,500) and 1.9% of collections monthly in each year following.
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.
Contact us today to learn how to buy a used car dealership franchise with Byrider! We have all the tools, training, and resources needed to start an auto loan franchise!
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