What is the minimum number of Byrider businesses a franchisee must operate to qualify for the MLFR?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ip Qualification, then Franchisee will no longer qualify for, and pay, the MLFR and will instead pay the Royalty Fee as originally provided under Sections 1-3 in this Addendum.
- D. Traditional Royalty Fee. The Company acknowledges and agrees that the MLFR shall supersede Sections 1-3 of this Addendum so long as Franchisee (and its affiliates, if applicable): (i) continue to qualify for, and elect to pay, the MLFR; (ii) continue to operate at least two Byrider Businesses; and (iii) remain in compliance with the Franchise Agreement and all other agreements with the Company and its affiliates. If Franchisee (or its affiliates, if applicable) fail to comply with the foregoing conditions for MLFR, Franchisee will immediately be required to comply with the obligations under Sections 1-3 of this Addendum (including the obligation to pay the Royalty Fee due thereunder).
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- Category Designation. For purposes of Section 3.10 of the Franchise Agreement, as revised by this Addendum, Franchisee will receive the Category Designation provided on Exhibit A to this Addendum.
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- Release.
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a franchisee must operate at least two Byrider businesses to qualify for and pay the MLFR (Modified Limited Fixed Royalty). This is contingent upon the franchisee continuing to meet the requirements for the MLFR and remaining compliant with the Franchise Agreement and all other agreements with Byrider and its affiliates.
If a franchisee, or their affiliates, fails to meet these conditions, they will be required to comply with the standard royalty fee obligations outlined in Sections 1-3 of the addendum. This ensures that the franchisee adheres to the operational and contractual standards set by Byrider to maintain the benefits of the MLFR.
Furthermore, the franchisee must maintain at least 51% common equity ownership and voting control among all Byrider businesses they own to continue qualifying for the MLFR. Failure to meet this ownership qualification will result in the franchisee paying the royalty fee as originally provided in the addendum, rather than the MLFR.