What is the monthly Ultra2 Royalty Fee for a Byrider franchise during its first year of operation?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 6
OTHER FEES
| Name of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Ultra2 Royalty Fee | $5,500-$7,800 plus 1.65%-1.90% Gross Receipts | Monthly | Gross Sales (Byrider Vehicle Sales): (i) during first year of operation of the Business, $5,500 per month; (ii) during second year of operation of the Business, the greater of $6,700 or 1% of Gross Sales (Byrider Vehicle Sales); and (iii) after second year of operation of Business, the greater of $7,800 or 1% of Gross Sales (Byrider Vehicle Sales). See Note 2. |
| Gross Receipts (CNAC Collections): After the first year of operation of the Business, 1.90% of your Gross Rece |
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Ultra2 Royalty Fee varies between $5,500 and $7,800 per month, plus an additional percentage of Gross Receipts. Specifically, during the first year of operation for a Byrider franchise, the Ultra2 Royalty Fee is $5,500 per month.
After the first year, the royalty fee structure changes. During the second year, it becomes the greater of $6,700 or 1% of Gross Sales (Byrider Vehicle Sales). After the second year, the royalty fee is the greater of $7,800 or 1% of Gross Sales.
In addition to the base royalty fee, franchisees must also pay 1.90% of Gross Receipts (CNAC Collections) after the first year of operation. This tiered structure means that a franchisee's royalty obligations will evolve as their business matures. It is important to note that these fees are paid monthly.