What is the deadline for Byrider to notify franchisees in writing about changes to the Volume Surcharge and Monthly Combined Royalty Cap?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
d from October through September as published by the U.S. Department of Labor, or a successor index. Any increase will be uniformly applied to all franchisees under the same form of franchise agreement. The Company will notify Franchisee in writing on or before December 1st of each calendar year as to any changes in the amounts for the following calendar year.
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider must notify franchisees in writing on or before December 1st of each calendar year regarding any changes to the Volume Surcharge and the Monthly Combined Royalty Cap. These changes will then take effect for the following calendar year.
This notification deadline is important for franchisees as it allows them to plan their finances and business strategies for the upcoming year, considering any potential adjustments to these fees. The Volume Surcharge is $112.00 for every vehicle sold at retail above 75 vehicles per Business Location per calendar month. The Monthly Combined Royalty Cap varies based on the franchisee's category designation, such as Founder Franchisee ($8,954 per month) or Legacy Interim Founder Franchisee ($13,431 per month).
Byrider's practice of providing advance notice aligns with common franchise industry standards, where franchisors typically give franchisees sufficient time to adjust to changes in fees or operational requirements. Franchisees should pay close attention to these notifications to understand how their costs and profitability may be affected in the coming year and to ensure they remain compliant with the franchise agreement.