Can Byrider increase the Volume Surcharge?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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.
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 Volume Surcharge. The Volume Surcharge is currently $112.00 for every vehicle sold at retail (financed or cash) exceeding 75 vehicles per month per location.
Byrider can increase the Volume Surcharge as stated in Section 3.10 of the Franchise Agreement. Any such increase will be tied to the National Consumer Price Index for All Urban Consumers (CPI-U), specifically the 'All Items' index from October to September, as published by the U.S. Department of Labor. This means the increase will be linked to a standard measure of inflation.
Any increase to the Volume Surcharge will be applied uniformly to all Byrider franchisees operating under the same franchise agreement. Byrider will provide written notification to franchisees regarding any changes to the Volume Surcharge on or before December 1st of each calendar year, with the changes taking effect the following calendar year. This advance notice allows franchisees to plan for any potential cost increases.