How often is the Volume Surcharge and Monthly Combined Royalty Cap adjusted for Byrider franchisees?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- Volume Surcharge and Royalty Cap Increases. The Company and Franchisee acknowledge and agree that the Company reserves the right to increase the Volume Surcharge set forth in Section 3.10 of the Franchise Agreement, as amended by this Addendum, and the Monthly Combined Royalty Cap by the National Consumer Price Index for All Urban Consumers (CPI-U) – All Items (1982-1984 = 100) for the most recent 12-month period from October through September as published by the U.S. Department of Labor, or a successor index. Any increase will be uniformly applied to all franchisees under the same form of franchise agreement. The Company will notify Franchisee in writing on or before December 1st of each calendar year as to any changes in the amounts for the following calendar year.
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Volume Surcharge and Monthly Combined Royalty Cap can be adjusted annually. Byrider reserves the right to increase both the Volume Surcharge and the Monthly Combined Royalty Cap. These adjustments are tied to the National Consumer Price Index for All Urban Consumers (CPI-U), specifically the All Items index using the 1982-1984 = 100 base, covering the most recent 12-month period from October through September as published by the U.S. Department of Labor, or any successor index.
Any such increase will be applied uniformly to all Byrider franchisees operating under the same form of franchise agreement. This ensures that all franchisees are treated equally regarding these potential fee adjustments.
Byrider will provide written notification to franchisees on or before December 1st of each calendar year regarding any changes to the Volume Surcharge and Monthly Combined Royalty Cap that will take effect for the following calendar year. This advance notice allows franchisees to plan and adjust their financial projections accordingly. Franchisees should pay close attention to these annual notifications to stay informed about potential changes to their royalty obligations.