On what page does the Byrider Franchise Agreement define 'Royalty Fee'?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
See Exhibit B for Franchisee's additional franchise category designation ("Additional Franchise Category")
- 3.9 Service Center. The term "Service Center" shall mean the service center located at the Business to service vehicles sold by Businesses in accordance with the Company's standards and specifications.
- 3.10 Royalty Fee. The Royalty Fee commencement date is 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 that amount calculated monthly as follows:
Gross Sales (Byrider Vehicle Sales):
- A. During the first year of operation of Franchisee's Business: $5,500 per month;
- B. During the second year of operation of Franchisee's Business: the greater of $6,700 per month or 1% of the Franchisee's Gross Sales (Byrider Vehicle Sales) for that month; and
- C. After the second year of operation of Franchisee's Business: the greater of $7,800 per month or 1% of the Franchisee's Gross Sales (Byrider Vehicle Sales) for that month.
The foregoing $7,800 minimum monthly payment provided in subsection (B) above will increase by 4.0% on January 1st of every other year (for example, it will increase by 4.0% on January 1, 2026 and increase by another 4.0% on January 1, 2028, etc.) throughout the Term (as defined in Section 5.1 below).
plus,
Gross Receipts (CNAC Collections):
After the first year of
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Royalty Fee is defined in Section 3.10. Section 3.10 appears on page 102 of the document. The Royalty Fee commencement date is the earlier of the date the Franchisee's Business is open to the public or the one-year anniversary of the date of the Franchise Agreement.
The Royalty Fee is calculated monthly and is based on Gross Sales from Byrider Vehicle Sales and Gross Receipts from CNAC Collections. For Gross Sales (Byrider Vehicle Sales), during the first year of operation, the fee is $5,500 per month. During the second year, it's the greater of $6,700 per month or 1% of Gross Sales. After the second year, it's the greater of $7,800 per month or 1% of Gross Sales. The $7,800 minimum monthly payment increases by 4.0% on January 1st of every other year.
For Gross Receipts (CNAC Collections), after the first year of operation, the fee is 1.90% of Gross Receipts. However, if it's the Franchisee's third or subsequent Franchise Agreement, the fee is 1.65% of Gross Receipts, provided the Franchisee is compliant with all other Franchise Agreements and operates at least two additional Businesses under separate Franchise Agreements. If these conditions aren't met, the fee reverts to 1.90%.