How much of the initial payment for the Byrider Area Development Agreement represents the Development Fee for each of the 2nd-4th franchises?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
t Schedule. The Franchisee approves of the foregoing development schedule as being reasonable and viable, and recognizes the development schedule is necessary to insure acceptable Byrider development of the Exclusive Development Area.
| B. | | Initial Franchise Fee. | The initial franchise fees are as follows: | |----|----------------------|----------------------------------------------------------------------|----------------------------------------------------------| | | 1. | 1st franchise: | $60,000.00 | | | 2. | 2nd franchise: | $40,000.00 | | | 3. | 3rd franchise: | $40,000.00 | | | 4. | 4th franchise: | $40,000.00 | | | | Total fee: | $180,000.00 |
- C. Payment Upon Closing
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the initial payment for the Area Development Agreement includes a Development Fee for each of the 2nd through 4th franchises. For the Traditional Franchisee, this fee is $17,500. For the Ultra Franchisee, this fee is $20,000. This fee is part of a larger initial payment that also covers the Initial Franchise Fee for the first franchise.
For a Traditional Franchisee, the total initial payment upon signing the Area Development Agreement is $112,500. This amount covers the $60,000 Initial Franchise Fee for the first franchise, plus $17,500 for each of the 2nd, 3rd, and 4th franchises. The Development Fee is applied toward the Initial Franchise Fee for each of these subsequent franchises. The remaining $17,500 for each of these franchises is due upon the execution of the individual franchise agreement for each respective location.
For an Ultra Franchisee, the total initial payment upon signing the Area Development Agreement is $120,000. This covers the $60,000 Initial Franchise Fee for the first franchise, plus a $20,000 Development Fee for each of the 2nd through 4th franchises. Similar to the Traditional Franchisee, the Development Fee is applied toward the Initial Franchise Fee, with the remaining $20,000 due upon the execution of each individual franchise agreement.
This structure means that a portion of the initial investment is allocated to securing the rights to develop future Byrider locations within the designated area, with the balance of the franchise fee due as each location is developed and agreements are signed. All fees paid under the Area Development Agreement are nonrefundable, so a prospective franchisee should carefully consider their development plans before entering into the agreement.