What is the Monthly Combined Royalty Cap for a Byrider Interim 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 an Interim Founder Franchisee is $11,192 per month. This cap represents the maximum amount a franchisee in this category will pay in royalties each month, regardless of their sales volume or other royalty calculations.
This royalty structure is part of a tiered system that Byrider uses, with different caps for different categories of franchisees, such as Founder Franchisees, Legacy Founder Franchisees, and Standard Franchisees. The specific category designation determines the applicable royalty cap. For example, a Founder Franchisee has a lower monthly cap of $8,954, while a Standard Franchisee has a higher cap of $13,431.
It's important to note that these figures represent the fixed dollar Royalty Fee due per month for the franchisee's Byrider business and any other Byrider businesses that the franchisee (or its affiliates) operate. The amount owed for each location is calculated by dividing the sum of the amounts designated in the Category Designation by the number of Byrider Franchised Locations. This means that if a franchisee operates multiple Byrider locations, the royalty cap applies to the combined royalties from all locations, not individually.