What is the deadline for receiving a refund of the initial franchise fee for a Byrider franchise (Item 5), and how does this relate to the franchisee's obligations listed in Item 9?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
M 5
INITIAL FEES
Franchise Agreement. You will pay a $60,000 lump sum franchise fee when you sign the Franchise Agreement. This initial franchise fee is refundable if Byrider Franchising Partners receives written notice from you within 60 days from the date of the Franchise Agreement and you sign the form of general release required by Byrider Franchising Partners. If you purchase additional franchises, you must pay the thencurrent nonrefundable initial franchise fee for each additional franchise. As of the date of this Disclosure Document, the initial franchise fee for each additional franchise is $35,000 (if you are a Traditional Franchisee, as provided below) or $40,000 (if you are an Ultra Franchisee, as provided below). The initial franchise fee for additional franchises is subject to change at the discretion of Byrider Franchising Partners without prior notice.
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, a franchisee may receive a refund of the initial franchise fee if Byrider Franchising Partners receives written notice within 60 days from the date of the Franchise Agreement. To receive the refund, the franchisee must also sign a general release form required by Byrider Franchising Partners. The initial franchise fee is $60,000.
Item 9 of the FDD discusses the franchisee's obligations, including technology system fees and reputation management fees. Specifically, the franchisee must execute the Byrider Software Services and User Agreement and license/use the Byrider technology system necessary to operate their business. They are also responsible for paying the costs of the technology system to the appropriate vendor as outlined in Exhibit D, Appendix B. Franchisees must also pay for reputation management texts performed by Byrider.
The refund of the initial franchise fee is contingent upon providing written notice within the specified timeframe and signing the release, and is not directly related to the franchisee's obligations regarding technology or reputation management fees outlined in Item 9. Failing to meet the obligations in Item 9 would likely be a breach of the franchise agreement, but would not impact the franchisee's ability to obtain a refund of the initial franchise fee if the franchisee meets the requirements in Item 5.