What is the estimated low-high range for the Development Fee payable to Byrider Franchising Partners for a Traditional Byrider franchisee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
VELOPMENT AGREEMENT RIDER
| Expenditures | Estimated Amount or Estimated Low-High Range* (Traditional Franchisee) | Estimated Amount or Estimated Low-High Range* (Ultra Franchisee) | When Payable | Method of Payment | To Whom Paid | |
|---|---|---|---|---|---|---|
| Development Fee (1) | $17,500- $87,500 | $20,000- $100,000 | Upon Execution of Area Development Agreement | Lump sum | Byrider Franchising Partners | |
| Total | $17,500- $87,500 | $20,000- $100,000 |
Explanatory Notes (The following numbered items correspond to the numbered 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).
Source: Item 7 — Estimated Initial Investment (FDD pages 32–36)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the estimated Development Fee for a Traditional Byrider franchisee ranges from $17,500 to $87,500. This fee is payable upon the execution of the Area Development Agreement and is paid as a lump sum to Byrider Franchising Partners. The Development Fee is determined by multiplying $17,500 by the number of franchises the franchisee commits to developing under the Area Development Agreement.
The standard Area Development Agreement typically requires a commitment to acquire between 1 and 5 franchises. This means the Development Fee will be $17,500 for a 1-franchise commitment, $35,000 for a 2-franchise commitment, $52,500 for a 3-franchise commitment, $70,000 for a 4-franchise commitment, or $87,500 for a 5-franchise commitment.
It is important to note that the Development Fee is fully earned by Byrider Franchising Partners upon receipt and is non-refundable. However, Byrider Franchising Partners will credit the fee in $17,500 increments against the Initial Franchise Fees that become due as the franchisee executes Franchise Agreements. This credit applies specifically to Traditional Franchisees. Prospective franchisees should carefully consider the number of franchises they commit to developing, as this decision directly impacts the initial Development Fee and the subsequent credit applied to franchise fees.