What is the due date for the Ultra2 Royalty Fee for a Byrider franchise?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 6
OTHER FEES
| Name of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Ultra2 Royalty Fee | $5,500-$7,800 plus 1.65%-1.90% Gross Receipts | Monthly | Gross Sales (Byrider Vehicle Sales): (i) during first year of operation of the Business, $5,500 per month; (ii) during second year of operation of the Business, the greater of $6,700 or 1% of Gross Sales (Byrider Vehicle Sales); and (iii) after second year of operation of Business, the greater of $7,800 or 1% of Gross Sales (Byrider Vehicle Sales). See Note 2. |
| Gross Receipts (CNAC Collections): After the first year of operation of the Business, 1.90% of your Gross Receipts (CNAC) throughout the remaining term of the Franchise Agreement, except, if you're signing your third (or more) Franchise Agreement, you will pay 1.65% of your Gross Receipts (CNAC Collections), so long as you are in compliance with all Franchise Agreements with Byrider Franchising, Partners and you continue to operate at least two additional Byrider Businesses that are open to the public. If you fail to meet these conditions, you will pay 1.90% for the remaining term of your third (or more) Franchise Agreement. | |||
| Unaffiliated Assignment of Retail Installment Contracts. You may sell and assign retail installment contracts to unaffiliated third parties (each or collectively "Third Party"); provided, however: (i) you must obtain our approval of the Third Party; and (ii) you may not sell or assign retail installment contracts with contract values, in the aggregate, of more than 20% of your Gross Sales 12-month rolling monthly average. | |||
| Third Party Financed Sales Fee. You shall pay to us $250 per contract sold or assigned at time of vehicle sale from your dealer entity to Third Party ("Third Party Financed Sales Fee"). | |||
| Bulk Sale of Accounts Fee. You shall pay a fee equal to 1.9% of gross amounts of Byrider-originated consumer retail installment contracts sold to a third party ("Bulk Sale of Accounts Fee"). | |||
| See al |
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Ultra2 Royalty Fee is due monthly. The amount of this fee ranges from $5,500 to $7,800, plus 1.65% to 1.90% of Gross Receipts.
The specific amount depends on the franchisee's gross sales from Byrider vehicle sales and CNAC collections. During the first year of operation, the fee is $5,500 per month. In the second year, it's the greater of $6,700 or 1% of Gross Sales from Byrider vehicles. After the second year, the fee is the greater of $7,800 or 1% of Gross Sales from Byrider vehicles. The percentage of Gross Receipts (CNAC) paid depends on how many franchise agreements the franchisee has signed.
It is important for prospective franchisees to understand these fees and how they are calculated, as they represent a significant ongoing expense. Franchisees should carefully consider their projected sales and collections to estimate the monthly Ultra2 Royalty Fee they will be required to pay to Byrider.