What is the condition for a Byrider franchisee to pay 1.65% of Gross Receipts (CNAC Collections)?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 6
OTHER FEES
| Name of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Ultra2 Royalty Fee | $5,500-$7,800 plus 1.65%-1.90% Gross Receipts | Monthly | Gross Sales (Byrider Vehicle Sales): (i) during first year of operation of the Business, $5,500 per month; (ii) during second year of operation of the Business, the greater of $6,700 or 1% of Gross S |
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the condition for a Byrider franchisee to pay between 1.65% to 1.90% of Gross Receipts is based on the franchisee being classified as an Ultra Franchisee. This applies to franchisees who joined the Byrider system after January 1, 2021. The term "Gross Receipts (CNAC Collections)" is defined as all monies received, such as payments from customer accounts, deferred down payments, payments from bulk sale of customer accounts, and including all other amounts received, except cash down payment received prior to delivery of the vehicle.
Ultra Franchisees also pay a monthly fee ranging from $5,500 to $7,800 in addition to the percentage of gross receipts. The specific amount within this range depends on the stage of operation. During the first year, the monthly fee is $5,500. In the second year, it increases to the greater of $6,700 or 1% of Gross Sales (Byrider Vehicle Sales).
It's important to note that the $7,800 minimum monthly payment associated with the Gross Sales component of the Ultra2 Royalty Fee will increase by 4.0% on January 1st of every other year. For example, it will increase on January 1, 2026, and again on January 1, 2028, throughout the term of the Franchise Agreement. This escalating minimum payment should be carefully considered by prospective Ultra Franchisees when evaluating the financial obligations of the franchise.