What is the monthly combined royalty cap for a Founder Franchisee under a Byrider franchise agreement?
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 vehicle sales and other factors, a Founder Franchisee will not pay more than $8,954 in total royalties to Byrider in any given month.
Byrider also offers different royalty caps for other categories of franchisees, 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 category has the lowest monthly royalty cap.
It's important to note that Byrider retains the right to increase the Monthly Combined Royalty Cap based on the National Consumer Price Index for All Urban Consumers (CPI-U). Byrider will notify franchisees in writing by December 1st of each year regarding any changes to the amounts for the following calendar year. This means the $8,954 cap could potentially increase over time, so prospective franchisees should factor in potential adjustments when evaluating the financial aspects of the franchise.