What is the definition of 'Gross Receipts (CNAC Collections)' for the Ultra2 Royalty Fee calculation?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Gross Receipts (CNAC Collections)" means 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.
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, 'Gross Receipts (CNAC Collections)' is defined as all monies received by the franchisee. This includes payments from customer accounts, deferred down payments, payments from bulk sales of customer accounts, and all other amounts received.
However, there is a specific exclusion: cash down payments received prior to the delivery of the vehicle are not included in 'Gross Receipts (CNAC Collections)'. This definition is important because the Ultra2 Royalty Fee is calculated, in part, as a percentage of these Gross Receipts.
Specifically, after the first year of operation, the franchisee will pay either 1.65% or 1.90% of their Gross Receipts (CNAC Collections) as part of the Ultra2 Royalty Fee. The exact percentage depends on whether the franchisee is signing their third (or more) Franchise Agreement and meets certain conditions related to compliance and operation of multiple Byrider businesses.