What exhibit in the Byrider FDD contains the Traditional and Legacy Royalty Fee Addendum?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- Franchise Agreement -- Exhibit B a.
- Traditional Area Development Agreement -- Exhibit C-1 b.
- Ultra Area Development Agreement -- Exhibit C-2 C.
- Acceptance and Assumption of Obligations Agreement -- Exhibit F d.
- Renewal Addendum Exhibit I e.
- Traditional and Legacy Royalty Fee Addendum Exhibit J g. h.
- Veteran Discount Addendum Exhibit K
- State-Specific Riders to Franchise Agreement and/or Area Development i. Agreement – Exhibit L
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Traditional and Legacy Royalty Fee Addendum is included as Exhibit J to the Franchise Disclosure Document. This addendum modifies the franchise agreement and outlines the terms and conditions for franchisees paying a modified royalty fee. This is relevant for franchisees who signed a franchise agreement with Byrider prior to January 1, 2021, and operate at least one other business in the Byrider system.
The addendum allows eligible franchisees to pay a modified royalty fee instead of the standard royalty fee detailed in Section 3.10 of the Franchise Agreement. The specific royalty fee structure and any potential modifications, such as increases based on the Consumer Price Index (CPI-U), are detailed within the addendum. Byrider retains the right to adjust the Volume Surcharge and Monthly Combined Royalty Cap based on the CPI-U, providing written notification to franchisees by December 1st of each year regarding any changes for the following calendar year.
Furthermore, the addendum includes provisions for franchisees who qualify for the Multi-Location Flat Rate (MLFR). If a franchisee meets the Ownership Qualification of at least 51% common equity ownership and voting control among their Byrider Businesses, operates at least two Byrider Businesses, and remains compliant with all agreements, they may be eligible to pay the MLFR instead of the standard royalty fee. The franchisee's Category Designation, which determines the royalty fee amount, is provided on Exhibit A to the Addendum.
Exhibit A to the Addendum specifies the franchisee's category designation for royalty fee purposes. The legal names franchisees create for operating their Byrider and CNAC entities must follow a specific format, such as "[your initials] Automotive" for the Byrider entity and "[your initials] Finance" for the CNAC entity. For example, JBH Automotive, LLC and JBH Finance, LLC. This standardization ensures consistency and clarity in the operation of Byrider and CNAC businesses.