What is the minimum payment for Byrider retail installment contracts assigned to Franchisee's affiliated CNAC entity, expressed as a percentage of the Franchisee's Gross Sales (Byrider Vehicle Sales)?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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%
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, franchisees assigning Byrider retail installment contracts to their affiliated CNAC entity are subject to a minimum payment. This payment is the greater of $6,000 or 2.5% of the franchisee's Gross Sales (Byrider Vehicle Sales).
This means that even if 2.5% of a franchisee's gross sales is less than $6,000, they must still pay the $6,000 minimum. This could impact newer franchisees or those in slower sales periods, as they'll need to ensure sufficient cash flow to meet this minimum obligation. The payment is calculated monthly.
It's important to note that there is also a maximum monthly payment that varies based on the franchisee's designation. The maximum monthly payment is $7,000 for "Founder Franchisees", $8,500 for "Legacy Founder Franchisees" and "Interim Founder Franchisees", or $10,000 for "Legacy Interim Founder Franchisees" and "Standard Franchisees".