How much of the initial payment for the Byrider Area Development Agreement represents the Initial Franchise Fee for the first franchise?
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 required when executing an Area Development Agreement includes $60,000 designated as the Initial Franchise Fee for the first franchise. The total initial payment for the Area Development Agreement is either $120,000 or $112,500, depending on the specific agreement terms. The remaining balance covers development fees for subsequent franchises.
Specifically, the Area Development Agreement grants the franchisee the right to develop multiple Byrider franchises within an exclusive territory. The initial payment covers the Initial Franchise Fee for the first location and a development fee for each additional franchise the franchisee commits to opening. These development fees are then applied towards the Initial Franchise Fees for those subsequent locations.
It's important to note that all fees paid under the Area Development Agreement are nonrefundable. This means that if a franchisee is unable to develop all the franchises they initially committed to, they will not receive a refund of the development fees already paid. This is a standard practice in area development agreements, as it compensates the franchisor for granting exclusive development rights and foregoing other potential franchisees in the area.
Prospective Byrider franchisees should carefully consider their ability to develop the agreed-upon number of franchises before entering into an Area Development Agreement. They should also be aware that the Initial Franchise Fee for additional franchises beyond those covered in the Area Development Agreement will be the then-current fee, which may be higher than the initial $60,000.