Is the Byrider development schedule extension fee refundable?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee of $17,500.00 for each of the 2nd-4th franchises. The Development Fee of $17,500.00 for each franchise shall be applied toward the Initial Franchise Fee for each of the 2nd-4th franchises, respectively, developed under the terms of this Area Development Agreement. The remaining $17,500.00 due for each of the 2nd-4th franchises shall be paid upon Franchisee's execution of the franchise agreement for the particular franchis
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the development schedule extension fee is nonrefundable. If a franchisee is unable to meet the development schedule outlined in their agreement, they may request a six-month extension from Byrider. To obtain this extension, the franchisee must pay Byrider a $5,000 extension fee. This fee is paid in a single lump sum when the extension request is submitted.
Because the fee is nonrefundable, a prospective Byrider franchisee should carefully consider their ability to meet the initial development schedule before signing the Area Development Agreement. If the franchisee anticipates potential delays, they should factor the $5,000 extension fee into their financial projections.
It is important to note that Byrider is not obligated to grant the extension request, even if the fee is paid. The decision to grant an extension is at Byrider's discretion. Therefore, franchisees should communicate proactively with Byrider regarding any potential delays and understand the factors that Byrider will consider when evaluating an extension request.