Where in the Byrider Franchise Agreement is the definition of 'Initial Franchise Fee' located?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.8 Initial Franchise Fee. The term "Initial Franchise Fee" shall mean Sixty Thousand ($60,000) Dollars. For each additional franchise, Franchisee shall pay the then current fee. See Exhibit B for Franchisee's additional franchise category designation ("Additional Franchise Category")
ARTICLE IX
FEES
- 9.1 Initial Franchise Fee. The Franchisee shall pay to the Company the Initial Franchise Fee of Sixty Thousand ($60,000.00) Dollars upon the execution of this Agreement. The Initial Franchise Fee shall be refundable only in the event the Company receives written notice from Franchisee of its desire to rescind the Agreement. This notice of rescission must be received by the Company within 60 days after the Agreement has been executed. In all other cases, the fee is nonrefundable.
| 1. | Initial Franchise Fee. The Company and Franchisee agree and acknowledge that | | the Initial Franchise Fee provided in Section 3.8 of the Franchise Agreement shall be $50,000. | |
ARTICLE III
CERTAIN DEFINITIONS
- The following is added to Item 5:
Byrider Franchising Partners applies the initial franchise fee to defray its cots for site review and approval, sales, legal compliance, salary, and general administrative expenses and profits.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the definition of 'Initial Franchise Fee' is located in Section 3.8 of Article III, titled 'Certain Definitions,' and Section 9.1 of Article IX, titled 'Fees,' within the Franchise Agreement. Section 3.8 defines the Initial Franchise Fee as $60,000. Section 9.1 states that the Franchisee must pay the $60,000 Initial Franchise Fee upon the execution of the Franchise Agreement.
For a veteran franchisee, the Veteran Discount Addendum amends the initial franchise fee. Section 1 of the addendum states that the initial franchise fee provided in Section 3.8 of the Franchise Agreement shall be $50,000.
The Initial Franchise Fee is generally nonrefundable, but Section 9.1 provides an exception: it is refundable if Byrider receives written notice from the franchisee of their desire to rescind the agreement within 60 days after the agreement's execution. Byrider applies the initial franchise fee to defray its costs for site review and approval, sales, legal compliance, salary, and general administrative expenses and profits.