Are the fees paid under the Byrider Area Development Agreement refundable?

According to Byrider's 2025 Franchise Disclosure Document, all fees paid under the Area Development Agreement are nonrefundable. This includes the initial franchise fee and development fees associated with securing the rights to develop multiple Byrider franchises within a specific area.

Specifically, when signing the Area Development Agreement, the franchisee must pay $112,500 or $120,000, depending on the agreement. This amount covers the initial franchise fee for the first franchise ($60,000) and a development fee for each of the subsequent three franchises ($17,500 or $20,000 each). The development fee is then applied towards the initial franchise fee for each of those subsequent franchises. The remaining balance for each of those franchises is due upon the execution of each individual franchise agreement.

This nonrefundable policy means that if a franchisee is unable to develop all the franchises outlined in the agreement, or if the agreement is terminated for any reason, Byrider will not refund any portion of the fees already paid. This is a significant financial risk for the franchisee, as they could lose a substantial amount of money if they are unable to fulfill their development obligations. However, if the franchisee is unable to develop a business in accordance with the development schedule, they may request a six-month extension from Byrider, which Byrider may grant. The extension fee is $5,000, paid in a lump sum when the request is submitted, and is also nonrefundable.