When must the remaining $17,500.00 be paid to Byrider for each of the 2nd-4th franchises?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
bleness of Development 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: | $35,000.00 | | | 3. | 3rd franchise: | $35,000.00 | | | 4. | 4th franchise: | $35,000.00 | | | | Total fee: | $165,000.00 |
- C. Payment Upon Closing. In c
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, if a franchisee enters into an Area Development Agreement, they must pay Byrider $112,500 upon execution of the agreement. This amount covers the initial franchise fee of $60,000 for the first franchise and a development fee of $17,500 for each of the 2nd through 4th franchises. This initial payment secures the rights to develop those additional locations.
The $17,500 development fee paid initially for each of the 2nd through 4th franchises is credited towards the full initial franchise fee for those locations. The remaining balance of $17,500 for each of these franchises is due when the franchisee executes the individual franchise agreement for that specific location.
In essence, the initial $17,500 deposit secures the right to develop the franchise, while the remaining $17,500 is paid when the franchisee is ready to move forward with opening that particular Byrider location and signs the franchise agreement. This payment structure allows Byrider to receive an upfront commitment while giving the franchisee some flexibility in the timing of opening multiple locations.