Is the Development Schedule Extension Fee for Byrider 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 Area Development Agreement, they may request a six-month extension from Byrider. To obtain this extension, the franchisee must pay Byrider a fee of $5,000. This fee is due in a single lump sum when the extension request is submitted.
This nonrefundable policy means that even if the franchisee ultimately does not develop the additional location within the extension period, or if the Area Development Agreement is terminated for any reason, the $5,000 extension fee will not be returned. This represents a financial risk for the franchisee, as they are committing to the fee upfront without a guarantee of being able to successfully develop the location.
Franchisees should carefully consider their ability to meet the development schedule before entering into an Area Development Agreement with Byrider. If there are concerns about meeting the schedule, franchisees should assess whether paying the $5,000 extension fee is a worthwhile investment, given that it is nonrefundable. It would be prudent to discuss potential challenges and strategies for meeting the development schedule with Byrider prior to signing the agreement.