Does Byrider offer a 'Legacy Founder Franchisee' option?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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. The term "Royalty Fee" shall mean the amount calculated monthly as follows:
| Number of Byrider Businesses | Founder Franchisee | Legacy Founder Franchisee or Interim Founder Franchisee | Legacy Interim Founder Franchisee or Standard Franchisee |
|---|---|---|---|
| 1 | $8,954.00 | $11,192.00 | $12,312.00 |
| 2 | $8,954.00 | $11,192.00 | $11,192.00 |
| 3 | $8,954.00 | $10,073.00 | $10,073.00 |
| 4 | $8,954.00 | $8,954.00 | $8,954.00 |
| 5 | $7,835.00 | $7,835.00 | $7,835.00 |
| 6 | $6,715.00 | $6,715.00 | $6,715.00 |
| 7 | $6,715.00 | $6,715.00 | $6,715.00 |
| 8 | $6,715.00 | $6,715.00 | $6,715.00 |
| 9 | $6,715.00 | $6,715.00 | $6,715.00 |
| 10 | $6,715.00 | $6,715.00 | $6,715.00 |
| 10+ | $6,715.00 | $6,715.00 | $6,715.00 |
All dollar figures represent fixed dollar Royalty Fee due per month for Franchisee's Business and any other Byrider businesses that Franchisee (or its affiliate(s)) operate. The amount owed for each location is calculated by dividing the sum of the amounts designated in the Category Designation by the number of Byrider Franchised Locations. For example, if Franchisee has a "Legacy Interim Founder Franchisee" Category Designation, it will pay a Royalty Fee of $11,192.33 per month, calculated as follows: (a) $12,312 for the first Byrider Business, plus $11,192 for the second Byrider Business, plus $10,073 for the third Byrider Business (in this case, $33,577), (b) divided by the number of Byrider Businesses that Franchisee (or its affiliate(s)) operate (in this case, three Byrider Businesses), which, in this case, would require (i) Franchisee to pay a Royalty Fee of $11,192.33 per month for the Franchisee's Business under the Franchise Agreement and (ii) Franchisee (or its affiliate(s)) to pay $11,192.33 for each of the other Byrider Businesses.
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
Yes, according to Byrider's 2025 Franchise Disclosure Document, they offer a 'Legacy Founder Franchisee' option. This designation affects various fees and royalty structures within the franchise agreement.
The FDD mentions different royalty fees for various franchisee types, including Legacy Founder Franchisees. For instance, the maximum monthly payment for gross sales related to Byrider vehicle sales assigned to the franchisee's affiliated CNAC entity is $8,500 for Legacy Founder Franchisees. This contrasts with the $7,000 maximum for Founder Franchisees and the $10,000 maximum for Legacy Interim Founder Franchisees and Standard Franchisees.
The monthly combined royalty cap also varies depending on the franchisee category. The cap for Legacy Founder Franchisees is $11,192 per month. This is higher than the $8,954 per month for Founder Franchisees but lower than the $13,431 per month for Legacy Interim Founder Franchisees and Standard Franchisees.
The existence of these different categories and associated fees highlights the importance of understanding which category a franchisee falls into, as it can significantly impact their financial obligations to Byrider. Prospective franchisees should clarify their potential category designation and its implications during their due diligence.