How is the Development Fee calculated for an Ultra Byrider franchisee under the Area Development Agreement Rider?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
items in the chart above.)
- The actual amount of the Development Fee is a function of the number of Byrider businesses you commit to developing under the applicable Area The Development Fee under the Traditional Area Development Agreement. Development Agreement is $17,500 multiplied by the number of franchises that you are obligated to acquire to satisfy your development schedule. The Development Fee under the Ultra Area Development Agreement is $20,000 multiplied by the number of franchises that you are obligated to acquire to satisfy your development schedule. While Byrider Franchising Partners and you may agree to deviate from it, the standard Area Development Agreement will require you to commit to acquiring between 1 and 5 franchises, in which case the Development Fee will be $17,500 or $20,000 (for a 1franchise commitment), $35,000 or $40,000 (for a (2-franchise commitment), $52,500 or $60,000 (for a 3-franchise commitment), $70,000 or $80,000 (for a 4-franchise commitment) or $87,500 or $100,000 (for a 5-franchise commitment). The Development Fee is fully earned by Byrider Franchising Partners upon receipt and is not refundable, but Byrider Franchising Partners will credit it, in $17,500 (for Traditional Franchisees) or $20,000 (for Ultra Franchisees) increments, against the Initial Franchise Fees that become due as you execute Franchise Agreements with Byrider Franchising Partners.
The investment shown in this chart does not include the investment required to open a Byrider Business. Refer to the preceding chart for those numbers.
ITEM 8
RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES
A. Proprietary Computer Software and Starter Kit. You must license Byrider Franchising Partners' Proprietary Computer Software from Byrider Franchising Partners and enter into a Software Services and User Agreement (see Exhibit E attached to the Franchise Agreement) with Byrider Franchising Partners for ongoing service and support to the Proprietary Software and all other components of the technology system.
Source: Item 7 — Estimated Initial Investment (FDD pages 32–36)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Development Fee for an Ultra Area Development Agreement is calculated by multiplying $20,000 by the number of franchises the franchisee is obligated to acquire based on their development schedule. The standard Area Development Agreement typically requires a commitment to acquire between 1 and 5 franchises. Therefore, the Development Fee for an Ultra Byrider franchisee can range from $20,000 for a single franchise commitment to $100,000 for a commitment to five franchises.
This fee is fully earned by Byrider upon receipt and is non-refundable. However, Byrider will credit the Development Fee in $20,000 increments against the Initial Franchise Fees that become due as the franchisee executes Franchise Agreements.
The estimated initial investment chart shows the Development Fee for an Ultra franchisee ranges from $20,000 to $100,000, payable upon the execution of the Area Development Agreement. This fee is paid as a lump sum to Byrider Franchising Partners.