What is the Monthly Combined Royalty Cap for a Byrider Legacy 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 a Legacy Interim Founder Franchisee is $13,431 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.
It's important to note that this figure is a cap, meaning the actual royalty paid could be lower depending on the specific royalty calculations outlined in Section 3.10 of the Franchise Agreement, as amended. The royalty fee commencement date is the earlier of the date the Franchisee's Business is open to the public or the one-year anniversary of the date of this Agreement.
Byrider also reserves the right to increase this Monthly Combined Royalty Cap based on the National Consumer Price Index for All Urban Consumers (CPI-U), published by the U.S. Department of Labor. Any such increase would be applied uniformly to all franchisees under the same form of franchise agreement, and Byrider would provide written notification of any changes by December 1st of each year.
Prospective franchisees should carefully review Section 3.10 of the Franchise Agreement and any related addenda to fully understand how the royalty fee is calculated and under what circumstances the Monthly Combined Royalty Cap would apply. Understanding these details is crucial for accurate financial planning and assessing the overall profitability of a Byrider franchise.