When does the Royalty Fee commencement date occur for a Byrider franchise?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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:
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, the Royalty Fee commencement date is determined by whichever occurs first: either the date the franchisee's Byrider business opens to the public, or the one-year anniversary of the date of the Franchise Agreement. This means a new franchisee will begin paying royalty fees no later than one year after signing the agreement, even if their location isn't yet open.
This policy ensures Byrider starts receiving royalty payments within a reasonable timeframe, regardless of how quickly the franchisee launches their business. For the franchisee, it's crucial to factor in this one-year deadline when projecting startup costs and revenue. If there are delays in opening the business, the franchisee will still be obligated to pay royalty fees, potentially impacting their initial profitability.
It is common in the franchise industry for royalty fees to commence upon opening or after a set period. The Byrider franchise agreement specifies a firm date for the start of royalty payments, which is important for franchisees to consider during their due diligence and financial planning.