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Its image dinged by regulatory actions against J.D. Byrider used-car franchisees in Ohio and Kentucky, Byrider Franchising Inc. is busy culling problem operators ahead of a planned 2006-2007 expansion.
The Carmel-based "buy here, pay here" chain with 123 stores in 28 states also said it has spent millions of dollars on vehicle repairs, customer service improvements and more sophisticated underwriting software to reduce loan delinquencies.
There were 127 franchised stores operating in 2004, plus another 13 company-owned stores, according to an offering circular the company filed with the Indiana secretary of state. The number of franchised locations was as high as 138 in 2002.
"We eliminated and parted ways with several franchisees," said William Ackermann, vice president of franchise operations.
Among them: J.D. Byrider of Louisville, operated by the father and son team of James and Marc Maguire. Last month, the Maguires agreed to pay $7.1 million to settle a lawsuit by Kentucky's attorney general, who alleged they sold defective cars at inflated prices.
The deal provides $500 in restitution to each of 14,400 customers who bought cars from 2000 to 2004.
Byrider's Carmel office is...