Franchisee-Owned Byrider Targets First Unit Growth in Years

Six Byrider franchisees bought the used car franchisor from Altamont Capital Partners in September 2024. After two years of rebuilding, the brand expects positive net unit growth in 2026 for the first time in several years.

Why franchisees bought the franchisor

After acquiring Byrider in 2011, Altamont opened corporate stores, and CEO Mike Onda says that pulled attention away from franchisee support. Before the sale, Altamont closed or sold all 32 company-owned stores. The new owners still run their own dealerships, so the people setting franchisor policy feel its effects every day.

The cost of the reset

The shrinkage was real. Byrider began 2023 with 136 locations, 124 of them franchised, and ended 2025 with 99, of which 81 were franchised, according to its franchise disclosure document. The ownership group used that stretch to upgrade technology, add franchise development staff and open a new franchise support center in April. It also added former Denny's CEO John Miller to the board.

Unit economics and an opening in the market

Franchise locations open more than two years averaged just over $7 million in revenue and $553,671 in pre-tax net income across 2024 and 2025, against an investment range of $947,000 to $1.58 million. Meanwhile, subprime auto competitors U.S. Auto Sales, American Car Center and Tricolor have shut down. That leaves share on the table for operators with disciplined underwriting.

What the ownership model signals

Franchisee-led buyouts of a franchisor are rare, and the owners say they are not shopping the company. That removes the exit clock that shapes most PE-backed systems and lets leadership plan around long-term infill and new regions. Franchisees in systems with a disengaged sponsor now have a working template to study.