Bottom line
- Total investment $947K – $1.6M including a $60K franchise fee, 2.5% ongoing royalty.
- Average unit revenue of $7.0M/year (median $6.9M). Estimated payback in 2.5 years.
- Rated MODERATE with a risk score of 67/100. SBA loan default rate of 0.0% across 7 loans (below the industry average).
- System contracting at -2830% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one Byrider unit return on the cash you put in?
Unlevered ROIC · per unit
59%
In Yale's "attractive" band (30–60%)
Levered LBO scenario · Yale Crease Capital framing
What would 25 Byrider units return on equity?
Equity IRR · 5-yr
22.1%
2.72× MOIC
Year-1 DSCR
4.16×
EBITDA ÷ debt service
Equity required
$51.6M
on $80.9M purchase
Total debt
$29.3M
SBA $5.0M + senior + seller note
Overview
About
Byrider franchisees operate used-car dealerships with in-house financing, targeting subprime and near-prime auto buyers. Day-to-day activities include vehicle acquisition and inventory management, customer credit evaluation and loan origination, sales and negotiation, and collection/servicing of in-house financed loans. The model blends traditional auto retail with consumer lending operations.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 25 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Byrider presents HIGH RISK due to rapidly shrinking franchisee base, multi-state regulatory litigation, thin profit margins under royalty load, and absence of financial performance documentation.
Score breakdown · what drove the 67 / 100 rating
- 01MINORSystem declining sharply with 10% unit contraction YoY (99 to ~89 units) indicating franchisee dissatisfaction and market weakness
- 02HIGHMultiple litigation cases including two state attorney general actions against predecessors for consumer practices and arbitrations involving contract breaches and fee disputes
- 03MINORHigh royalty burden (3.5% combined: 2.5% sales + 1.0% receipts) on relatively thin margins (~7.2% net), limiting franchisee profitability
- 04MEDNo Item 19 (financial performance representations) disclosed, preventing independent verification of $506K average net income claim
- 05MINORArbitration history shows pattern of training quality and fee refund disputes, suggesting operational and contractual issues
- 06HIGHInvestment of $947K–$1.58M requires strong ROI justification given system contraction and litigation overhang
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
99 numbers
One-time purchase · CSV download · Validation questions included
FDD download
Byrider · FDD (2026) PDF