What fees are used to calculate the Byrider Licensor's aggregate liability to the Licensee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
LICENSOR'S AGGREGATE LIABILITY TO LICENSEE FOR ANY CAUSE WHATSOEVER IS LIMITED TO AN AMOUNT EQUAL TO THE FEES COVERED BY APPENDIX B AND ACTUALLY PAID BY LICENSEE FOR USE OF THE LICENSED SYSTEM DURING THE THEN MOST RECENT 12 MONTH PERIOD OF TIME PRECEDING THE DATE OF THE EVENT (OR, IF MORE THAN ONE EVENT, THE FIRST EVENT) GIVING RISE TO THE LIABILITY.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Byrider's aggregate liability to the franchisee is limited to the fees covered by Appendix B. The calculation is based on the fees actually paid by the franchisee for the use of the licensed system during the most recent 12-month period before the event that led to the liability.
This means that if a franchisee has a claim against Byrider, the maximum amount they can recover is capped by the amount of fees they've paid under Appendix B in the preceding year. This limitation of liability is a standard practice in franchising, designed to protect the franchisor from potentially large and unforeseen claims.
For a prospective Byrider franchisee, it's important to understand which specific fees are included in Appendix B, as these are the fees that will be considered when calculating the limit of Byrider's liability. Franchisees should carefully review Appendix B and discuss with Byrider what types of fees are included and how this limitation could impact them in various scenarios.