J.D. Byrider

#221

At a Glance

Products & Services: Used vehicle sales & financing

Number of Locations: 144

Total Investment: $675.48K - 5.21M

Founded: 1979

Began Franchising: 1989

About J.D. Byrider

Owner of a Chevrolet-Cadillac dealership in Marion, Indiana, James F. DeVoe learned how profitable used cars could be when he added a used car dealership to his operation in 1979. With a $19 ad in the local paper, DeVoe sold eight cars the first week for a gross profit of $1,000 each.

Ten years later, DeVoe founded J.D. Byrider in 1989 to deliver dependable used cars and affordable financing.

Indianapolis-based J.D. Byrider specializes in 5- to 10-year-old cars sold for an average of $7,000. The target customer is a blue-collar worker with a blemished or limited credit history, a segment that has grown with the rise of personal bankruptcies. Unlike most dealerships, where customers pick a car and then figure out how to finance it, J.D. Byrider reverses the process: Credit counselors guide customers toward vehicles within their price range.

Every J.D. Byrider franchise is two companies working together: a used car sales company, J.D. Byrider, and a sub-prime auto finance company, the CarNow Acceptance Co. (CNAC). Both are independently owned and operated by franchisees.

Franchise Units

Year	U.S.	Canadian	International	Company Owned
2012	124	0	0	20
2011	119	0	0	15
2010	116	0	0	13
2009	117	0	0	13

Where Seeking Franchisees: Franchisor is seeking new franchise units in the following states:
Alaska, Alabama, Arkansas, Arizona, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Iowa, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maryland, Maine, Michigan, Minnesota, Missouri, Mississippi, Montana, Midwest, Nebraska, North Carolina, North Dakota, Northeast, New Hampshire, New Jersey, New Mexico, Nevada, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South, South Carolina, South Dakota, Southeast, Southwest, Tennessee, Texas, Utah, Virginia, Vermont, West, Washington, Wisconsin, West Virginia, Wyoming.

Startup Costs, Ongoing Fees and Financing

Total Investment: $675,480 - $5,210,000
Franchise Fee: $50,000
Ongoing Royalty Fee: 2.5%
Term of Franchise Agreement: 10 years, renewable

Financial Requirements

Net Worth: $1,000,000
Liquid Cash Available: $1,000,000

Operations

50% of all franchisees own more than one unit. Number of employees needed to run franchised unit: 15 - 20. Absentee ownership of franchise is allowed. (50% of current franchisees are owner/operators).

Financing Type	In-House	Third Party
Franchise Fee
Startup Costs
Equipment
Inventory
Accounts Receivable
Payroll

How This Franchise Supports Franchisees

Training: Available at headquarters: 2 weeks. At franchisee's location: Varies. Web-based curriculum

Ongoing Support: Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives, Lease Negotiation

Marketing Support: Ad slicks,