What is the maximum monthly payment for Byrider retail installment contracts assigned to a Franchisee's affiliated CNAC entity for a 'Legacy Interim Founder Franchisee'?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ss is open to the public or the one-year anniversary of the date of this Agreement. The term "Royalty Fee" shall mean that amount calculated monthly as follows:
Gross Sales (Byrider Vehicle Sales):
- A. For Franchisee's Byrider retail installment contracts assigned to Franchisee's affiliated CNAC entity: the greater of $6,000 or 2.5% of the Franchisee's Gross Sales (Byrider Vehicle Sales) (as defined above in Section 3.7) with a maximum month
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the maximum monthly payment for Byrider retail installment contracts assigned to a franchisee's affiliated CNAC entity varies based on the franchisee's designation. For a 'Legacy Interim Founder Franchisee,' the maximum monthly payment is $10,000. This payment is part of the Gross Sales calculation related to Byrider vehicle sales.
Specifically, the franchisee will pay the greater of $6,000 or 2.5% of the franchisee's Gross Sales (Byrider Vehicle Sales), but the monthly payment will not exceed the stated maximum based on their franchisee category. This structure incentivizes franchisees to increase their gross sales, as the royalty payment is directly tied to their revenue, subject to the cap.
It's important for prospective franchisees to understand how their designation impacts these fees, as it directly affects their monthly expenses. The 'Legacy Interim Founder Franchisee' designation has a higher cap compared to 'Founder Franchisees' ($7,000) and 'Legacy Founder Franchisees' or 'Interim Founder Franchisees' ($8,500), but it is the same as 'Standard Franchisees'. This should be considered when evaluating the potential profitability of a Byrider franchise.