Byrider Franchise FDD, Profits & Costs (2025)
Headquartered in Carmel, Indiana, Byrider has established itself as a leading franchise in the U.S. used car sales and financing sector.
Founded in 1979 by James F. DeVoe in Marion, Indiana, the company has experienced steady growth, expanding its reach over the decades.
Byrider operates under a buy-here-pay-here model, integrating vehicle sales, servicing, and financing within a single business framework. This structure allows franchise owners to have greater control over financial transactions, much like a traditional lender.
Franchising since 1989, Byrider provides its franchise partners with extensive support, covering training, marketing, and daily operations. This well-developed support system ensures consistency and high service standards across all locations, strengthening the brand’s market presence.
With a strong emphasis on customer service and community involvement, Byrider has built a reputation for reliability and transparency. This approach continues to attract both buyers and aspiring franchisees looking for a proven business model in the used car industry.
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Initial Investment
How much does it cost to start a Byrider franchise? It costs on average between $947,000 – $1,578,000 to start a Byrider franchised center.
The investment covers expenses such as facility construction, necessary equipment, inventory, and initial operating costs. The total amount varies based on multiple factors, including the business model, geographic location, and whether the franchisee opts to lease or buy the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $60,000 |
| Starter Kit | $0 – $2,500 |
| Rent (3 months) | $30,000 – $60,000 |
| Furniture, Fixtures, and Equipment | $1,500 – $50,000 |
| Service Center Equipment | $2,000 – $70,000 |
| Signs and Awnings | $2,000 – $50,000 |
| Security Deposit for Property and Utilities | $2,000 – $10,000 |
| Opening Inventory of Vehicles | $75,000 – $100,000 |
| Advertising and Grand Opening | $18,500 – $30,000 |
| Technology/Phone/Security Systems | $5,000 – $40,000 |
| Bonds, Licenses, and Business Permits | $1,000 – $5,000 |
| Additional Funds (6 months) | $750,000 – $1,100,000 |
| Total Estimated Initial Investment | $947,000 – $1,577,500 |
Average Revenue (AUV)
How much revenue can you make with a Byrider franchise? A Byrider franchised business makes on average $6,558,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,149,000 yearly revenue for similar auto repair franchises. Below are a few Byrider competitors as a comparison:
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Byrider Franchise Disclosure Document
Frequently Asked Questions
How many Byrider locations are there?
As of the latest available data, Byrider operates 128 locations across the United States, comprising both company-owned and franchised dealerships.
What is the total investment required to open a Byrider franchise?
The total investment required to open a Byrider franchise ranges from $947,000 to $1,578,000.
What are the ongoing fees for a Byrider franchise?
Byrider franchisees are subject to ongoing fees that support the brand’s operations and marketing efforts. In the first year, the monthly royalty fee is $5,500. From the second year onward, this fee transitions to 1% of gross sales (with a minimum of $7,500) and 1.9% of collections each month.
Additionally, franchisees contribute to marketing through a monthly advertising fee of $1,500, which grants access to comprehensive marketing support, including research-based strategies and a variety of advertising materials.
What are the financial requirements to become a Byrider franchisee?
To become a Byrider franchisee, candidates are required to have a minimum net worth ranging between $800,000 and $1,500,000, along with liquid capital between $200,000 and $1,500,000. These financial prerequisites ensure that franchisees possess the necessary resources to establish and sustain their dealership operations effectively.
How much can a Byrider franchise owner expect to earn?
The average gross sales for a Byrider franchise are approximately $6.56 million per location. Assuming a 15% operating profit margin, $6.56 million yearly revenue can result in $984,000 EBITDA annually.
Who owns Byrider?
Byrider franchise is owned by Byrider Franchising Partners, LLC, a franchisor-only entity formed in September 2024.
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