When is the development fee due and payable for a Byrider franchise?
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, the development fee is due and payable at the time you sign the Area Development Agreement. The amount of the development fee depends on whether you are considered a "Traditional Franchisee" or an "Ultra Franchisee." If you or your affiliates signed a Franchise Agreement with Byrider before January 1, 2021, for at least one Byrider Business and are in compliance with all agreements, you are considered a Traditional Franchisee. Otherwise, you are considered an Ultra Franchisee.
For Traditional Franchisees, the development fee is $17,500 multiplied by the number of Byrider Businesses to be developed under the Development Schedule, in addition to the first Byrider Business. For Ultra Franchisees, the development fee is $20,000 multiplied by the number of Byrider Businesses to be developed under the Development Schedule, in addition to the first Byrider Business. This fee is paid in one lump sum and is non-refundable.
Byrider credits the development fee in increments of $17,500 (for Traditional Franchisees) or $20,000 (for Ultra Franchisees) against the initial franchise fee as Franchise Agreements are signed. This continues until the total credits equal the initial development fee paid under the Area Development Agreement. Byrider fully earns the development fee when it is paid.