What is the amount a Standard Franchisee pays for their second Byrider business?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
the earlier of the date the Franchisee's Business is open to the public or the one-year anniversary of the date of this Agreement. The term "Royalty Fee" shall mean the amount calculated monthly as follows:
| Number of Byrider Businesses | Founder Franchisee | Legacy Founder Franchisee or Interim Founder Franchisee | Legacy Interim Founder Franchisee or Standard Franchisee |
|---|---|---|---|
| 1 | $8,954.00 | $11,192.00 | $12,312.00 |
| 2 | $8,954.00 | $11,192.00 | $11,192.00 |
| 3 | $8,954.00 | $10,073.00 | $10,073.00 |
| 4 | $8,954.00 | $8,954.00 | $8,954.00 |
| 5 | $7,835.00 | $7,835.00 | $7,835.00 |
| 6 | $6,715.00 | $6,715.00 | $6,715.00 |
| 7 |
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the royalty fee for a Standard Franchisee's second Byrider business is $11,192.00. This fee structure is part of a tiered system where the royalty fee can vary depending on the number of Byrider businesses the franchisee operates. This amount is specifically for franchisees categorized as "Legacy Interim Founder Franchisee or Standard Franchisee".
This fee is part of the broader royalty fee structure, which is calculated based on the number of locations a franchisee operates. The table provided in the FDD outlines the specific fees for franchisees with one to ten or more locations. For example, a Standard Franchisee with one location pays $12,312.00, while with three locations, the fee is $10,073.00 per location. This tiered structure incentivizes franchisees to expand their operations, as the per-location royalty fee decreases with each additional Byrider business.
It's important to note that these royalty fees are subject to change. Byrider retains the right to increase the Royalty Fee based on the National Consumer Price Index for All Urban Consumers (CPI-U). Franchisees will be notified in writing of any changes by December 1st of each year, with the changes taking effect the following calendar year. Therefore, prospective franchisees should consider the potential for these fees to increase over time when evaluating the financial viability of operating multiple Byrider locations.