How does the initial franchise fee for Byrider (Item 5) compare to the estimated costs for proprietary computer software and a starter kit (Item 8)?

M 5

INITIAL FEES

Franchise Agreement. You will pay a $60,000 lump sum franchise fee when you sign the Franchise Agreement. This initial franchise fee is refundable if Byrider Franchising Partners receives written notice from you within 60 days from the date of the Franchise Agreement and you sign the form of general release required by Byrider Franchising Partners. If you purchase additional franchises, you must pay the thencurrent nonrefundable initial franchise fee for each additional franchise. As of the date of this Disclosure Document, the initial franchise fee for each additional franchise is $35,000 (if you are a Traditional Franchisee, as provided below) or $40,000 (if you are an Ultra Franchisee, as provided below). The initial franchise fee for additional franchises is subject to change at the discretion of Byrider Franchising Partners without prior notice. Except as described above, the initial franchise fee is not refundable under any circumstances.

Other than for Byrider Businesses operated by affiliates or other related companies (where the initial franchise fee is and has been waived) the initial franchise fee is and has been uniform.

Reduced Franchise Fee for Veterans. If you are a veteran of the U.S. Armed Forces, your initial franchise fee will be reduced by $10,000. For purposes of determining whether you qualify, a "veteran" means a person who served in the active military, naval, air, or space service, and who was discharged or released therefrom under conditions other than dishonorable. If this applies to you, you will sign the Veteran Discount Addendum (attached as Exhibit K).

Area Development Agreement Rider. If you are granted the right to purchase additional franchises, you must sign the applicable Area Development Agreement Rider.