ByriderFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Byrider franchise requires a total initial investment of $947K – $1.6M, including a $60K franchise fee and an ongoing 2.5% royalty[2]. Per the 2026 FDD, average unit revenue was $7.0M[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2026 FDD issuance
Overview
- Investment
- $947K – $1.6M
- 42nd pct Automotive
- Avg gross sales
- $7.0M
- 23rd pct Automotive
- Royalty
- 2.5%
- 1st pct Automotive
- Units
- 99
- 23rd pct Automotive
- SBA default
- N/A
Quick verdict · Automotive · color = vs category peers
Green = >15% above Automotive avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Each dollar invested generates 5.6x in gross revenue, well above the typical 1.5-2.5x range.
Started franchising in 2025. Newer systems carry more uncertainty but may offer better territories.
The system contracted 10% year-over-year. Investigate why units are closing.
40% cash-on-cash return (based on P&L Bottom Line). Above the 20% threshold most investors target.
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), with an estimated 40% cash-on-cash return (based on P&L Bottom Line).
- Verdict A (Top Quintile) with a risk score of 53/100.
- System contracting at -28.3% CAGR over 3 years. Investigate whether closures are franchisor-driven (consolidation) or franchisee-driven (economics).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Byrider Franchising Partners, LLC
- Parent company
- Byrider Enterprise Partners, LLC
- Ultimate parent
- Byrider Investment Partners, LLC
- Predecessor
- Byrider Franchising
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 111 Congressional Blvd., Suite 500, Carmel, Indiana 46032
- Auditor
- Katz, Sapper & Miller, LLP
- Audited financials
- Franchisor revenue
- $6.0M
- vs $18.3M prior year
Independent franchisee associations
- National Owners Association
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- already operate a Service Center at a Byrider Business
Other brands the franchisor or its parent operates (Item 1).
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.
- CEO
- Michael J. Onda
- Headquarters
- IN
- Founded
- 2024
- FDD year
- 2026
- States available
- 22
FDD Item 7 · 2026 filing · 12 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Fee | $60K | $60K | |
| Starter Kit | $0 | $3K | |
| Rent (3 months) | $30K | $60K | |
| Furniture, Fixtures and Equipment | $2K | $50K | |
| Service Center Equipment | $2K | $70K | |
| Signs and Awnings | $2K | $50K | |
| Security Deposit for Property and Utilities | $2K | $10K | |
| Opening Inventory of Vehicles | $75K | $100K | |
| Advertising and Grand Opening | $19K | $30K | |
| Technology/Phone/Security Systems | $5K | $40K | |
| Bonds, Licenses and Business Permits | $1K | $5K | |
| Additional Funds - 6 months | $750K | $1.1M | |
| Total initial investment | $947K | $1.6M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$1.3M
18.5% margin
Unlevered ROIC
59%
EBITDA / total invested capital
Payback
20 mo
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $947K – $1.6M
- Near category avg vs category
- Liquid capital req'd
- $750K – $1.1M
- Near category avg vs category
- Franchise fee
- $50K – $60K
- Better than avg vs category
- Royalty
- 2.5%
- percentage_of_gross · typical 6–8%
- Ad fund
- 4.0%
- typical 3–5%
- Total fee load
- 6.5%
- vs 9–13% typical
- Payback period
- 2.5 yrs
- From FDD / Item 19
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 2.5% of gross sales |
| Marketing / ad fund | 4.0% of gross sales |
| Transfer fee | $5K |
| Inventory (initial) | $75K – $100K |
| Total fee load | 6.5% of rev |
A 6.5% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
Financial Performance
- Avg gross sales
- $7.0M
- Per unit, per year
- Median gross sales
- $6.9M
- Avg p&l bottom line
- $507K
- Reported as P&L Bottom Line in FDD Item 19
- Cash-on-cash
- 40.2%
- Based on P&L Bottom Line / investment midpoint
- Item 19 type
- Average and Median
- Sample size
- 70 units
- vs category median 70
- Range (low → high)
- $3.4M→$12.6M
- Cohort dispersion (min → max)
- Quartile band
- $5.5M→$8.8M
- Bottom 25% → top 25%
- Transparency tier
- full
- Categorical assessment of disclosure depth
- Transparency
- 9 / 5
- vs category median 4 / 5 · above
Compared against 221 Automotive brands
Revenue is 5.6x the investment midpoint. At typical franchise margins, this suggests a payback under 3 years.
vs Automotive averages
How Byrider Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 99
- Opened
- 0
- Last reporting year
- Closed
- 4
- Turnover rate
- 4.0%
- Company-owned
- 18
- Corporate units in the system
- % franchised
- 82%
- vs corporate-owned
- Net growth (yr3)
- -10.0%
- Net unit change last year
- 3-yr CAGR
- -28.3%
- Compounded over last 3 years
3-year detail · Item 20
- Closed (3yr)
- 71
- Terminated (3yr)
- 12
- Transfers (3yr)
- 5
- Reacquired (3yr)
- 5
- Franchisor bought back
Last reporting year only, multi-year history not disclosed in this brand's FDD.
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 contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 7 7(a) loans on file; statistical reliability is limited below 10 loans.
- Total loans
- 7
- Loan volume
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
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.
Litigation (Item 3)
3 case reference(s): 0 pending, 2 settled.
Largest disclosed settlement: $3
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Katz, Sapper & Miller, LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: Yes
Score breakdown · what drove the 53 / 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
| Initial term | 7 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 3 |
| Territory type | Radius |
| Protected territory | Yes |
| Online sales rightsℹ | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| RoFR response window | 30 days |
| Termination notice | 30 days |
| Curable defaultsℹ | 1 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Indiana |
| Litigation count | 9 |
View Item 3 litigation summary
3 case reference(s): 0 pending, 2 settled.
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 0 hrs
- Training location
- On-site and corporate
- Site selection
- franchisee
- POS system
- Discover
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Discover
Item 20 · call current owners
Franchisee Contacts
99 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Byrider · FDD (2026) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Byrider franchise?
The total investment to open a Byrider franchise ranges from $947K – $1.6M, with an initial franchise fee of $60K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Byrider franchise owners earn?
According to Item 19 of the Byrider FDD, the average gross sales per unit is $7.0M. The median is $6.9M. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Byrider's franchise failure rate?
SBA 7(a) loan charge-off data is not available for Byrider (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many Byrider franchise locations are there?
As of their most recent FDD filing, Byrider has 99 total units in the United States, including 113 franchised units and 18 company-owned units.
Is Byrider a good franchise to buy?
FranchiseVerdict rates Byrider as a A-grade franchise with a risk score of 53 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.