What determines whether a franchisee is considered a 'Traditional Franchisee' when purchasing a Byrider franchise?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
opment Agreement Rider. If you or your affiliate(s) have signed a Franchise Agreement with Byrider Franchising prior to January 1, 2021 for at least one Byrider Business, and you are otherwise in compliance with that agreement and all other franchise agreements with Byrider Franchising Partners, you will be considered a "Traditional Franchisee." If you or your affiliate(s) have not signed a Franchise Agreement with Byrider Franchising prior to January 1, 2021 for at least one Byrider Business, then you will be considered a "Ultra Franchisee." If you are a Traditional Franchisee, you will sign the Traditional Area Development Agreement Rider, attached to this disclosure document as Exhibit C-1 (the "Traditional Area Development Agreement"), or if you are an Ultra Franchisee, you will sign the Ultra Area Development Agreement Rider, attached to this disclosure document as Exhibit C-2 (the "Ultra Area Development Agreement").
Under the Traditional Area Development Agreement, you must pay us a development fee of $17,500 multiplied by the number of Byrider Businesses to be developed under the Development Schedule in addition to the first Byrider Business.
Source: Item 5 — Initial Fees (FDD pages 19–21)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, whether a franchisee is considered a 'Traditional Franchisee' or an 'Ultra Franchisee' depends on their prior franchise agreement history with Byrider. Specifically, if the franchisee or their affiliate had signed a Franchise Agreement with Byrider Franchising before January 1, 2021, for at least one Byrider Business, and they are in compliance with that agreement and all other franchise agreements with Byrider, they will be classified as a 'Traditional Franchisee'.
This distinction is important because it affects the type of Area Development Agreement a franchisee will sign and the associated fees. Traditional Franchisees sign the Traditional Area Development Agreement, while Ultra Franchisees sign the Ultra Area Development Agreement. These agreements dictate the development fees required for purchasing additional Byrider franchises. For example, under the Traditional Area Development Agreement, the development fee is $17,500 multiplied by the number of Byrider Businesses to be developed, whereas under the Ultra Area Development Agreement, it is $20,000 multiplied by the number of businesses.
The classification also impacts the initial franchise fee for additional franchises. As of the date of the 2025 Disclosure Document, the initial franchise fee for each additional franchise is $35,000 for Traditional Franchisees and $40,000 for Ultra Franchisees. This difference in fees highlights the potential financial benefits of being classified as a Traditional Franchisee, based on the franchisee's prior relationship with Byrider.
Prospective franchisees should carefully consider their eligibility for Traditional Franchisee status, as it can lead to significant cost savings when expanding their Byrider business through area development agreements and additional franchise purchases. It is crucial to verify with Byrider whether any prior agreements qualify them for this status to take advantage of the lower fees associated with being a Traditional Franchisee.