When are the expenditures that comprise the total estimated initial investment for a Byrider franchise payable?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- SINGLE BYRIDER BUSINESS
| Expenditures | Estimated Amount or Estimated Low-High Range* | When Payable | Method of Payment | To Whom Paid |
|---|---|---|---|---|
| Initial | $60,000 | Upon Execution of | Lump sum | Byrider |
| Franchise Fee | Franchise | Franchising | ||
| (1) | Agreement | Partners | ||
| Starter Kit (2) | $0- $2,500 | As arranged | Lump sums as incurred | Approved suppliers |
| Rent (3 | $30,000- | As arranged | Lump sum | Suppliers |
| months) (3) | $60,000 | |||
| Furniture, Fixtures and Equipment (4)* | $1,500- $50,000 | As arranged | Lump sums as incurred | Suppliers |
| Service Center Equipment (5)* | $2,000- $70,000 | As arranged | Lump sums as incurred | Suppliers |
| Signs and | $2,000- | As arranged | Lump sums as incurred | Approved suppliers |
| Awnings (6)* | $50,000 | |||
| Security Deposit for Property and Utilities (7) | $2,000- $10,000 | As arranged | Lump sums as incurred | Lessor, utility companies |
| Opening Inventory of Vehicles (8) | $75,000- $100,000 | As incurred | Lump sums as incurred | Suppliers |
| Advertising and Grand Opening (9) | $18,500- $30,000 | As incurred | Lump sum | Suppliers as incurred |
| Technology/ Phone/Security Systems (10)* | $5,000- $40,000 | Upon installation | Lump sum | Approved suppliers |
| Bonds, Licenses and Business Permits (11) | $1,000- $5,000 | As incurred | Lump sums as incurred | Agencies |
| Additional Funds – 6 months, see Note (12) | $750,000- $1,100,000 | As incurred | Lump sum |
Source: Item 7 — Estimated Initial Investment (FDD pages 32–36)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the expenditures that comprise the total estimated initial investment are payable at different times, depending on the specific expenditure. The development fee, which ranges from $17,500 to $87,500 for a Traditional franchisee and $20,000 to $100,000 for an Ultra franchisee, is payable upon the execution of the Area Development Agreement. The initial franchise fee of $60,000 is payable upon the execution of the Franchise Agreement. The technology, phone, and security systems, which range from $5,000 to $40,000, are payable upon installation.
Other expenditures, such as the starter kit, rent, furniture, fixtures, equipment, service center equipment, signs and awnings, security deposit for property and utilities, opening inventory of vehicles, advertising and grand opening costs, bonds, licenses and business permits, and additional funds, are payable as arranged or as incurred. These payments are typically made in lump sums to approved suppliers, lessors, utility companies, or agencies.
Prospective franchisees should note that the timing of payments can significantly impact their initial cash flow requirements. Understanding when each expense is due allows for better financial planning and management during the startup phase. It is also important to clarify the payment terms with suppliers and lessors to ensure favorable arrangements. Byrider also estimates additional funds for 6 months of $750,000-$1,100,000 are to be paid as incurred.