What is the fee for a first failure of a Byrider compliance audit?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Name of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Compliance Audit | $500 – first failure $2,500 – second failure $10,000 – third failure | As incurred | If you fail a compliance audit (meaning a score of less than 80%) conducted by Byrider Franchising Partners, you must pay Byrider Fra |
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the fee for the first failure of a compliance audit is $500. Byrider conducts these audits, and if a franchisee scores less than 80%, it is considered a failure, triggering the fee. Subsequent failures incur higher fees, with the second failure costing $2,500 and the third failure costing $10,000.
This compliance audit fee is in addition to any other penalties or corrective actions Byrider might impose to address the issues identified during the audit. Franchisees should aim to maintain a high level of compliance to avoid these fees and potential further actions. The audit ensures that franchisees adhere to Byrider's standards and procedures, which is crucial for maintaining brand consistency and quality across all locations.
Prospective franchisees should understand the criteria used in the compliance audits and the potential costs associated with failing to meet the required standards. This fee structure incentivizes franchisees to maintain operational standards and address any deficiencies promptly. It is important to note that the fee is "as incurred," meaning it is due immediately upon notification of the failed audit.