What is the fee for a six-month extension to the Development Schedule for a Byrider franchise, and when is it due?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
Fee of $17,500.00 for each of the 2nd-4th franchises. The Development Fee of $17,500.00 for each franchise shall be applied toward the Initial Franchise Fee for each of the 2nd-4th franchises, respectively, developed under the terms of this Area Development Agreement. The remaining $17,500.00 due for each of the 2nd-4th franchises shall be paid upon Franchisee's execution of the franchise agreement for the particular franchis
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee who is unable to meet the development schedule outlined in their Area Development Agreement may request a six-month extension from Byrider. This extension is not automatically granted; it is subject to Byrider's approval. If Byrider grants the extension, the franchisee must pay a fee of $5,000. This fee is a one-time, lump-sum payment.
The $5,000 extension fee is due at the time the franchisee submits their request for the extension. This means the franchisee must be prepared to pay the fee upfront to be considered for the extension. The FDD states that this fee is nonrefundable, regardless of whether Byrider approves the extension request.
This policy has important implications for prospective Byrider franchisees. It highlights the importance of carefully planning and managing the development schedule to avoid the need for an extension. If an extension becomes necessary, franchisees should be aware of the $5,000 fee and the fact that it is nonrefundable, even if the extension is not ultimately granted. This could represent a significant financial risk if the extension is denied and the franchisee is unable to proceed with the development as planned.