Is the $17,500 Development Fee for each of the 2nd-4th Byrider franchises refundable?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
dule. The Franchisee approves of the foregoing development schedule as being reasonable and viable, and recognizes the development schedule is necessary to insure acceptable Byrider development of the Exclusive Development Area.
| B. | | Initial Franchise Fee. | The initial franchise fees are as follows: | |----|----------------------|----------------------------------------------------------------------|----------------------------------------------------------| | | 1. | 1st franchise: | $60,000.00 | | | 2. | 2nd franchise: | $35,000.00 | | | 3. | 3rd franchise: | $35,000.00 | | | 4. | 4th franchise: | $35,000.00 | | | | Total fee: | $165,000.00 |
- C. Payment Upon Closing. In c
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the $17,500 development fee for each of the 2nd through 4th franchises is nonrefundable. This fee is part of the larger payment made when the Area Development Agreement is executed. Specifically, the franchisee pays $112,500 upon signing the agreement, which covers the initial franchise fee of $60,000 for the first franchise and $17,500 for each of the subsequent franchises.
The development fee is applied toward the initial franchise fee for each of the 2nd through 4th franchises. The remaining $17,500 for each of these franchises is due when the franchisee signs the individual franchise agreement for that particular location.
It is important to note that all fees paid under the Area Development Agreement with Byrider are nonrefundable. This means that if a prospective franchisee decides not to proceed with developing the additional franchises, they will not receive a refund of the development fees already paid. This is a standard practice in franchising, as these fees often cover the franchisor's administrative and legal costs associated with granting the development rights.