How much of the initial payment to Byrider is allocated to the Initial Franchise Fee for the first franchise?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
it is advisable for the Company and/or the Franchisee to modify or discontinue the use of any of the Marks, and/or use one or more additional or substitute Marks then, upon notice from the Company, the Franchisee, at its expense, will immediately make such changes and amendments to the Marks and all materials on which the Marks are displayed as may be required by the Company.
ARTICLE IX
FEES
- 9.1 Initial Franchise Fee. The Franchisee
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the initial franchise fee for the first franchise is $60,000. This fee is payable upon the execution of the Franchise Agreement. However, this amount may differ if the franchisee qualifies for a veteran discount.
For franchisees entering into an Area Development Agreement, the initial payment covers the initial franchise fee for the first franchise and development fees for subsequent franchises. For instance, one agreement stipulates a payment of $120,000, covering the $60,000 initial franchise fee for the first franchise and $20,000 development fees for each of the 2nd through 4th franchises. Another agreement specifies a payment of $112,500, comprising the $60,000 initial franchise fee for the first franchise and $17,500 development fees for the 2nd through 4th franchises.
It's important to note that the initial franchise fee is generally non-refundable, except in specific circumstances where the franchisee rescinds the agreement within 60 days of execution, providing written notice to Byrider. Byrider applies the initial franchise fee to cover costs related to site review and approval, sales, legal compliance, salary, and general administrative expenses and profits.