How much does a franchise cost?
The initial franchise fee is $50,000, and $35,000 is required for each additional franchise purchased. However, there are many other costs associated with acquiring a suitable location, such as getting a new business staffed and open and properly funding a business which could ultimately generate a $10 million portfolio of automotive receivables. As such, the capitalization needed from a new franchisee can easily reach $1 million.
Is financing offered?
J.D. Byrider Franchising does not directly provide, or guarantee, any financing to its franchisees. However, we do maintain relationships with many banks and lending institutions that are very familiar with both the financing of sub-prime automotive receivables and our particular business model. It is possible for introductions to be made to those lenders.
What is the royalty fee?
The monthly royalty fee is 2.5 percent of gross sales (vehicle sales price) and 1 percent of gross receipts (repayment of debt). Monthly royalties are capped at $12,000. Royalty caps decline with the opening of additional locations.
Do I get marketing and advertising support?
All franchisees are members of the J.D. Byrider Advertising Group Inc. For a monthly fee of $1,500, an entire marketing and advertising package is developed and made available to you. This package includes research-based marketing strategies and targeted advertising materials, including TV, radio, print, direct mail, outdoor, and point-of-purchase materials, plus music and our national sponsorship of Tony Stewart Motorsports. The monthly fee also entitles members to unlimited consultation with the staff of J.D. Byrider Advertising Group Inc.
How do I know if the location I want is available?
J.D. Byrider can give you guidance on areas where a dealership would be viable. We will assist you in considering a variety of factors, including the demographics of the location, accessibility, daily traffic counts, competition, rent and construction costs, and whether there is sufficient residential and commercial presence to support the business.
How much money can I make?
We can provide data regarding the historical performance of our company-owned stores, and this data is in fact contained in our Franchise Disclosure Document. But, J.D. Byrider does not make revenue or profit forecasts for any prospective franchise location. Results simply are subject to 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.
Is training provided?
J.D. Byrider provides a wide array of training to meet every operational need. Formal training is conducted at the Byrider Training Center in Carmel, Indiana, for sales, service, finance, controller, and management personnel. In addition, regional training is conducted at various sites throughout the year. For in-store training, we offer Byrider Digital University (BDU), an on-line opportunity for personnel with limited time. Operations manuals are provided for your reference when you sign a franchise agreement. In addition, expert advice is provided regularly by franchise consultants and functional experts.
Do I need previous experience in automotive sales?
No! We actively seek qualified franchisees from varied backgrounds. Your ability to manage a team and keep them focused of the fundamentals of the business is the greatest indicator of potential success. We provide the training you will need in the technical aspects of the business and how to effectively use our tremendous software model. How you put that training into application through an effective, high energy staff will determine your success.
How does J.D. Byrider differ from its’ competition?
J.D. Byrider has defined the dealer carried finance used car business over the past 20 years. We do everything we can in the way we approach the business and our customers to outclass the competition. J.D. Byrider is the largest company in the industry and holds the greatest market share and brand awareness. Our commitment to offer a better car, service that vehicle with our own warranty and help our customers advance is not a common thing.
How long does it take to open a new store?
In general 9-12 months. Many factors influence the timing for development of a dealership. Your commitment to finding and developing a site is the key to opening a store quickly. Your ability to obtain financing will limit delays as well.
J.D. Byrider franchisees meet three times each year. In addition to an annual convention in November—featuring an update on the state of the company, an opportunity to participate in a variety of instructional seminars, and a chance to network with fellow dealers—franchisees gather in early spring and late summer. The spring and summer meetings address new information, procedures, and systems provided by Byrider Franchising. They also serve as forums for policy development for the Dealer’s Association, and the sharing of ideas for process improvement and profit maximization.
What are the steps to become a franchisee?
Your first step will be to make a trip to our corporate headquarters in Carmel, Indiana for what we call Discovery Day. This is a day for you to meet the senior management team and learn from each department head the phenomenal expertise in systems and personnel that franchising with J.D. Byrider provides you as a franchisee. This is your opportunity to learn everything you can about this business and be able to ask questions of some of the highest skilled and most experienced people in this industry. If you are approved as a franchisee we will prepare franchise agreement documents along with an area development agreement if you wish to gain rights to a larger territory for additional store development. Once you sign a franchise agreement we will help you through the steps of finding financing for your new venture, acquiring the appropriate real estate location, gaining the knowledge to successfully operate your new business and helping you open your new unit.
Who do I contact if I have questions?
You can call:
Vice President, Franchise Sales & Finance
12802 Hamilton Crossing Blvd.
Carmel, IN 46032