What is the development fee for each Byrider Business under the Traditional Area Development Agreement, in addition to the first Byrider Business?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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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. Under the Ultra Area Development Agreement, you must pay us a development fee of $20,000 multiplied by the number of Byrider Businesses to be developed under the Development Schedule in addition to the first Byrider Business. The applicable development fee is due and payable at the time you sign the respective Area Development Agreement. We credit the development fee, in $17,500 (for Traditional Franchisees) or $20,000 (for Ultra Franchisees) increments, against the respective initial franchise fee that is due as Franchise Agreements are signed until the aggregate amount of such credits equals the initial development fee you paid to us under the respective Area Development. We will fully earn the development fee due under the respective Area Development Agreement when paid, and you must pay us the development fee in one lump sum. Th
Source: Item 5 — Initial Fees (FDD pages 19–21)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a Traditional Franchisee entering into a Traditional Area Development Agreement must pay a development fee of $17,500 for each Byrider Business to be developed under the Development Schedule, in addition to the first Byrider Business. This fee is payable when the Area Development Agreement is signed.
Byrider credits this development fee in $17,500 increments against the initial franchise fee due as Franchise Agreements are signed. This continues until the total credits equal the initial development fee paid under the Area Development Agreement.
Byrider considers the development fee fully earned upon payment, and it is required to be paid in one lump sum. It is important to note that this development fee is non-refundable, regardless of whether all Byrider Businesses are eventually developed under the agreement.