CARMEL, Ind. — After 25 years and now 150 stores in its
buy-here, pay-here network, J.D. Byrider contends it has this new franchisee
launch program down pretty nicely.

Vice president of franchise sales Jack Humbert pointed to a
host of reasons why J.D. Byrider now is expecting to match 2012's
record-breaking year of double-digit growth of new dealerships by the end of
this year.

"We make the franchising for J.D. Byrider as turn-key as
possible," Humbert told SubPrime Auto Finance News.

During the first half of this year, five new franchised
locations opened, including:

—Feb. 4: Omaha, Neb., with owner Russ Larson

—April 11: Bradenton, Fla., with owner Paul Maier

—May 6: Rockford, Ill., with owners Pat and Rachel Bachrodt

—June 5: Barboursville, W.Va., with owners Bill Rowland and
Mark Morris

—June 27: Jackson, Miss., with owner Barry Biggers

Humbert explained how J.D. Byrider works with potential
owners such as Larson, Maier, Rowland, Morris, Biggers and the Bachrodts to
start turning metal.

About 30 to 45 days after a possible franchisee and the
company initially make contact, J.D. Byrider hosts what it calls a "discovery
day." These events take place regularly, once a month at the company
headquarters.

"After discovery day, (potential franchisees) do some normal
due diligence," Humbert said. "I assist them in contacting current owners who I
recommend to get a good feel for the opportunity with the franchise.

"Usually about 30 days after the discovery day, we have a
signed franchised agreement," he continued.

Then depending on whether the franchisee has to acquire land
and facilities, the new owner usually has a lot full of used vehicles for
retail sale within six to nine months.

"Normally never any longer than 12 months," Humbert said.

Last week, the newest J.D. Byrider dealership opened in
Colonie, N.Y., marking the company's 150th location.

In addition, 12 current or new franchisees from automotive,
banking and business and entrepreneurial backgrounds have signed commitments
and are projected to open new J.D. Byrider dealerships through the end of the
year.

"We continue to build on our 25 years of franchising
experience," Humbert said. "We want to make sure the value our owners receive
is really top in the industry. We build off of what we have been doing
constantly.

"Our executive team at Byrider is one of the most well-rounded
in the franchise industry," he continued. "We have skilled professionals who
enhance the value of the investment from finance to real estate to training and
technology. There is total support so the dealerships can truly provide our
customer with better cars, affordable payments, better car care and generate a
maximum profitability."

Humbert pointed out a hurdle new J.D. Byrider franchisees
face while striving to that maximum profitability, one that's not necessarily
unique to BHPH dealerships.

"It's just like in any industry. People is always the key,"
Humbert said. "From recruiting, hiring, training and coaching, corporate really
assists in every piece. We have strong assistance from current franchise owners,
as well. They enjoy being part of our growth and will assist us in training and
coaching new prospective owners and management teams that come into our system.

"It's a very tight knit group that we have. You don't see
that everywhere," he added.

Humbert stressed it's that kind of culture that's propelled
J.D. Byrider to some of the other accomplishments the company enjoyed during
the first half of 2013, including:

—Reached a new milestone: J.D. Byrider's one millionth
vehicle was sold in South Attleboro, Mass., and the vehicle was given away to
the lucky customer.

—Attained a three-month cumulative 95 percent sales
satisfaction and 91 percent service satisfaction rating across the dealership
network. 

—Company stores completed second securitization, this time
for $121 million with AA bond rating.

—Refreshed branding and marketing concept was unveiled,
including a new interactive website allowing customers to find and choose their
preferred make and model at a local dealership.                                                       

What's ahead for J.D. Byrider for the rest of 2013 and beyond?

"We're at store No. 150, but we have a great opportunity to
move into many markets," Humbert said. "We still have a lot of opportunity to
grow into very good markets across the country.

"We also understand our market is not shrinking," he
continued. "The most constant demand for vehicles is in that 5- to 10-year-old
market segment. Really, 74 percent of used-car buyers are in that market,
purchasing 5- to 10-year-old cars. That's exactly where we're at. We're sitting
right in that segment."

Nick Zulovich can be reached at nzulovich@subprimenews.com. Continue the conversation with SubPrime Auto Finance News on LinkedIn and Twitter.


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