What is the range of the Ultra2 Royalty Fee that a Byrider franchisee might pay?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
articular calendar month.
- Ultra Franchisee (this applies if you joined the System after January 1, 2021). If you are an Ultra Franchisee, you will pay the Ultra2 Royalty Fee provided above. Note, the $7,800 minimum monthly payment provided above in connection with the Gross Sales (Byrider Vehicle Sales) component of the Ultra2 Royalty Fee 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 o
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Ultra2 Royalty Fee applies to franchisees who joined the Byrider system after January 1, 2021. The FDD does not provide a specific range for the Ultra2 Royalty Fee. However, it does state that the minimum monthly payment of $7,800 associated with the Gross Sales component of the Ultra2 Royalty Fee will increase by 4.0% on January 1st of every other year, beginning January 1, 2026.
This means that while the initial minimum payment is defined, the actual Ultra2 Royalty Fee can vary and increase over time. The absence of a defined maximum or a detailed calculation method beyond the minimum and its periodic increases makes it difficult to determine the full range of potential royalty fees.
A prospective Byrider franchisee should inquire with Byrider about the complete calculation method for the Ultra2 Royalty Fee, including any factors beyond gross sales that might influence the fee. Understanding the potential upper limits and the specific variables affecting the royalty is crucial for accurate financial planning and assessing the overall profitability of the franchise.