What is the Monthly Combined Royalty Cap for a Byrider Founder Franchisee?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
the terms and conditions provided in Section 1 of this Addendum, the Royalty Fee that Franchisee will pay will be subject to the following maximum monthly payments (the "Monthly Combined Royalty Cap"):
| Category Designation | Monthly Combined Royalty Cap* |
|---|---|
| Founder Franchisee | $8,954 per month |
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the monthly combined royalty cap for a Founder Franchisee is $8,954 per month. This means that regardless of the royalty fees calculated based on gross sales, CNAC collections, and volume surcharges, a Founder Franchisee will not pay more than $8,954 in total royalties to Byrider in any given month. This cap provides a degree of financial predictability for the franchisee.
It's important to note that this royalty cap may be subject to increases. Byrider reserves the right to increase the Monthly Combined Royalty Cap by the National Consumer Price Index for All Urban Consumers (CPI-U). Any such increase will be uniformly applied to all franchisees under the same form of franchise agreement, and Byrider will notify franchisees in writing by December 1st of each year regarding any changes for the following calendar year.
The FDD also outlines different royalty caps for other franchisee designations, such as Legacy Founder Franchisees, Interim Founder Franchisees, Legacy Interim Founder Franchisees, and Standard Franchisees. These caps range from $11,192 to $13,431 per month, indicating that the Founder Franchisee designation has the lowest monthly royalty cap. This could be a significant advantage for franchisees who qualify for this designation.