What are the conditions under which Byrider will pass through charges for Third Party Software or changes to Infrastructure Standards to the licensee?

According to Byrider's 2025 Franchise Disclosure Document, Byrider may pass through charges to the franchisee for enhancements to the Licensed System that constitute Third Party Software or changes to Infrastructure Standards. This pass-through charge will equal the franchisee's pro rata portion of Byrider's cost for the software or infrastructure changes. However, these changes to Infrastructure Standards must be reviewed by the Dealer Board and used by all users of the Licensed System.

In simpler terms, if Byrider needs to update its software with components from another company (Third Party Software) or makes significant changes to its basic technology setup (Infrastructure Standards), franchisees might have to share in covering those costs. The amount each franchisee pays will be a proportional share of Byrider's total expense.

For a prospective Byrider franchisee, this means that the initial franchise fee and ongoing royalties are not the only technology-related expenses to consider. Unforeseen costs may arise if the software requires updates from third-party vendors or if Byrider decides to implement new infrastructure standards. It is important to note that these infrastructure changes must be approved by the Dealer Board and implemented across the entire Byrider system, suggesting that franchisees have some level of input or oversight regarding these potential costs. Franchisees should inquire about the typical frequency and magnitude of these pass-through charges to better anticipate potential expenses.