In California, what is Byrider required to defer until all pre-opening obligations are completed and the franchisee is open for business?

According to Byrider's 2025 Franchise Disclosure Document, the Department of Financial Protection and Innovation in California mandates that Byrider must defer the collection of all initial fees from franchisees in California. This deferral is required until Byrider has fulfilled all of its pre-opening obligations to the franchisee and the franchisee has opened their Byrider business.

This requirement provides a significant benefit to prospective Byrider franchisees in California. By delaying the collection of initial fees, franchisees are not required to pay these fees until they are actually ready to begin operations. This can alleviate some of the financial burden associated with starting a new franchise, as franchisees can use those funds for other essential startup costs such as securing a location, purchasing equipment, and hiring staff.

This deferral also ensures that Byrider is incentivized to complete all of its pre-opening obligations in a timely and satisfactory manner. If Byrider fails to meet these obligations, it will not be able to collect the initial fees from the franchisee. This provides an additional layer of protection for franchisees and ensures that Byrider is committed to supporting them throughout the startup process.

It is important for prospective franchisees in California to understand this requirement and to ensure that the Franchise Agreement reflects this deferral of initial fees. Franchisees should also carefully review the list of pre-opening obligations to ensure that Byrider has fulfilled all of its responsibilities before paying any initial fees.