When does the Royalty Fee commencement date occur for Byrider franchisees?

According to Byrider's 2025 Franchise Disclosure Document, the royalty fee commencement date is determined by whichever occurs first: the date the franchisee's business opens to the public, or the one-year anniversary of the date of the Franchise Agreement. This applies to "Founder," "Legacy Founder Franchisees," "Interim Founder Franchisees," "Legacy Interim Founder Franchisees," and "Standard Franchisees."

For a prospective Byrider franchisee, this means that royalty fees will begin no later than one year after signing the Franchise Agreement, regardless of whether the business is open. If the location opens to the public sooner, the royalty fees start at that earlier date. This is a fairly standard practice in franchising, as it ensures the franchisor receives revenue within a reasonable timeframe, even if the franchisee experiences delays in opening.

It is important for potential franchisees to factor this timeline into their financial projections. They should ensure they have sufficient capital to cover royalty payments even if their location opening is delayed. Understanding this commencement date is crucial for managing cash flow and ensuring a smooth start to their Byrider franchise operation.