Can Byrider increase the Monthly Combined Royalty Cap?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| Category Designation | Monthly Combined Royalty Cap* |
|---|---|
| Founder Franchisee | $8,954 per month |
| Legacy Founder Franchisee | $11,192 per month |
| Interim Founder Franchisee | $11,192 per month |
| Legacy Interim Founder Franchisee | $13,431 per month |
| Standard Franchisee | $13,431 per month |
-
- Volume Surcharge and Royalty Cap Increases. The Company and Franchisee acknowledge and agree that the Company reserves the right to increase the Volume Surcharge set forth in Section 3.10 of the Franchise Agreement, as amended by this Addendum, and the Monthly Combined Royalty Cap by the National Consumer Price Index for All Urban Consumers (CPI-U) – All Items (1982-1984 = 100) for the most recent 12-month period from October through September as published by the U.S. Department of Labor, or a successor index. Any increase will be uniformly applied to all franchisees under the same form of franchise agreement. The Company will notify Franchisee in writing on or before December 1st of each calendar year as to any changes in the amounts for the following calendar year.
-
- Multi-Location Flat Rate Royalty.
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider does reserve the right to increase the Monthly Combined Royalty Cap. The increase will be tied to the National Consumer Price Index for All Urban Consumers (CPI-U) – All Items (1982-1984 = 100) for the most recent 12-month period from October through September as published by the U.S. Department of Labor, or a successor index.
Any such increase must be applied uniformly to all Byrider franchisees operating under the same franchise agreement. Byrider is obligated to provide written notification to franchisees regarding any changes to the Monthly Combined Royalty Cap on or before December 1st of each calendar year, with the changes taking effect the following calendar year.
The Monthly Combined Royalty Cap varies based on the franchisee's category designation. For example, Founder Franchisees have a cap of $8,954 per month, while Legacy Founder and Interim Founder Franchisees have a cap of $11,192 per month. Legacy Interim Founder and Standard Franchisees share the highest cap at $13,431 per month. This means that while Byrider can increase the cap, the actual amount a franchisee pays is also dependent on their specific category designation.