What is the Monthly Combined Royalty Cap for a Byrider Legacy 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, a Legacy Founder Franchisee has a monthly combined royalty cap of $11,192. This means that regardless of how high the royalty fees might calculate based on sales, collections, and volume, the franchisee will not pay more than $11,192 in royalties to Byrider in a given month.
This royalty cap can be beneficial for Legacy Founder Franchisees, especially during periods of high sales volume or efficient collections, as it provides a ceiling on their royalty obligations. It allows for more predictable budgeting and potentially higher profit margins during those peak periods.
It's important to note that Byrider retains the right to increase this Monthly Combined Royalty Cap based on the National Consumer Price Index for All Urban Consumers (CPI-U). Any such increase would be applied uniformly to all franchisees under the same franchise agreement, and Byrider would provide written notification of changes by December 1st of each year for the following calendar year. This potential for adjustment means that the cap is not permanently fixed and could increase over time, impacting the franchisee's financial planning.