When is the remaining $20,000 due for each of the 2nd-4th Byrider franchises under the Area Development Agreement?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
| B. | | Initial Franchise Fee. | The initial franchise fees are as follows: | |----|----------------------|----------------------------------------------------------------------|----------------------------------------------------------| | | 1. | 1st franchise: | $60,000.00 | | | 2. | 2nd franchise: | $40,000.00 | | | 3. | 3rd franchise: | $40,000.00 | | | 4. | 4th franchise: | $40,000.00 | | | | Total fee: | $180,000.00 |
- C. Payment Upon Closing
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 a development fee for each of the 2nd through 4th franchises. This development fee is not the full initial franchise fee. The remaining balance of $20,000 for each of these franchises is due when the franchisee executes the franchise agreement for each specific franchise.
This means that while a portion of the initial franchise fee is paid upfront as a development fee, the remaining amount is deferred until the franchisee is ready to commit to opening each subsequent location. This could benefit franchisees by spreading out the initial investment over a longer period.
It is important to note that all fees paid under the Area Development Agreement are nonrefundable, so franchisees should carefully consider their development plans before entering into such an agreement with Byrider.