5/10

Franchimp Summary Rating

3 /10
Higher than 76% of peers
1 /10
Higher than 97% of peers

Franchise Summary

Description
The franchise offered is to operate a used vehicle retail sales and finance business under the name Byrider and CarNow Acceptance Co. ("CNAC")
Company Background
J.D. Byrider has been in business for over 30 years and is one of the leading providers of high quality used cars, trucks, and SUVs to customers nationwide. J.D., as it's known by customers and employees alike, offers an incredible selection of great pre-owned vehicles at a variety of price points with financing options that suit every budget. And because we're committed to providing an outstanding customer experience, we offer a full range of services including: Free Lifetime Oil Changes Complimentary Car Washes No Cost Vehicle History Reports Extended Powertrain Warranty Options (up to 4 Year/100K Miles) Factory Trained Technicians on Site Everyday
Franchise Opportunity
J.D. Byrider is the largest used car retailer in America, with over 400 locations and 5,000 employees across the country. Our franchisees can enjoy a low cost of entry into this business model that offers an average gross margin of 50% or more on each sale. The company has been around for over 30 years and continues to grow at a rapid pace due to its unique retail approach, which focuses on selling high quality cars at no-haggle prices with simple financing terms available through CNAC's captive finance source. We have partnered with some of the leading automobile manufacturers like Ford Motor Company (NYSE :F), General Motors Co (NYSE :GM) and Toyota Motor Corporation (ADR) (NYSE :TM). This partnership allows us to sell new vehicle models before they are even released in dealerships nationwide! Our customers love our service because we save them money by offering them high trade-in values for their vehicles
Corporate Structure
Byrider Franchising LLC (JDB) is an Indiana limited liability company, incorporated on January 19, 1989 as a corporation. JDB changed from a corporation to a limited liability company in April 2011. JDB’s direct parent company is JD Byrider Systems, LLC. JDB and its parent maintain their principal business address at 12802 Hamilton Crossing Blvd, Carmel, Indiana, 46032.
Investment and Franchisee Fees
The estimated total investment necessary to begin operation of a J.D. Byrider Business ranges from $675,480 to $5,277,500 depending upon whether assets are leased or purchased. This includes approximately $53,617 to $87,500 that must be paid to the franchisor or its affiliate.

Earnings Transparency

10 /10
This Franchise discloses far more about the financial performance of their franchisees compared to other franchises in the same industry.

Why do some franchises disclose more than others?
There are many reasons why a brand may choose to not include item 19 on their FDD: they could be a newer franchise, they may be in a unique industry that is not super profitable or well-known yet

Financial Performance of "Standard" Units

Average Revenue Per Unit

Compared vs. Automotive Industry

$6,320,794 / unit

Franchise Type: Standard

Average Revenue During 2021

$6,320,794
$535,789
Industry Low
$8,443,764
Industry High

Average Gross Profit Per Unit

Compared vs. Automotive Industry

$2,196,224 / unit

Franchise Type: Standard

Average Gross Profit During 2021

$2,196,224
$570,981
Industry Low
$2,196,224
Industry High

Franchisee Attrition

3 /10
This franchise's rate of attrition in 2018 of 9.60% was Slightly Higher than the 5% in the Automotive industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year. It is a strong indicator of the strength of the underlying operating model

Distribution of J.D. Byrider Franchisees

J.D. Byrider Franchise System Development in 2021

FAQ

How much investment do I need to start my own J.D. Byrider business?
Franchisees typically require at least $814 to $1 investment to get their J.D. Byrider business started
What are the initial franchise fees for J.D. Byrider ?
Franchisees typically need to pay at least $60 in fees directly to J.D. Byrider in order to earn the right to launch their business
How much money can I make with a J.D. Byrider franchise? What are the average revenues for a typical J.D. Byrider business?
We estimate that the average revenue of an individual J.D. Byrider unit is approximately $6,320,794. We based this on Item 19 in franchise disclosure document
How long do I need to commit to running a J.D. Byrider unit? What is my contractual commitment?
J.D. Byrider franchisees are typically required to sign up to a 10 year contract initially. The renewal length is 10 years. You can of course exit early but don’t expect to get any refund!

Accessibility

1 /10
The Franchisor's investment costs ranges from $356,500 to $6,524,200 which is Much Higher than the $0 to $0 average in the Automotive industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc

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