What is the Royalty Fee for a Byrider Founder Franchisee with 6 Byrider Businesses under the Multi-Location Flat Rate?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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 the amount calculated monthly as follows:
| Number of Byrider Businesses | Founder Franchisee | Legacy Founder Franchisee or Interim Founder Franchisee | Legacy Interim Founder Franchisee or Standard Franchisee |
|---|---|---|---|
| 1 | $8,954.00 | $11,192.00 | $12,312.00 |
| 2 | $8,954.00 | $11,192.00 | $11,192.00 |
| 3 | $8,954.00 | $10,073.00 | $10,073.00 |
| 4 | $8,954.00 | $8,954.00 | $8,954.00 |
| 5 | $7,835.00 | $7,835.00 | $7,835.00 |
| 6 | $6,715.00 | $6,715.00 | $6,715.00 |
| 7 |
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, a Founder Franchisee operating under the Multi-Location Flat Rate (MLFR) with six Byrider businesses will pay a royalty fee of $6,715.00 per month. This flat rate applies to each of the six businesses, meaning the total monthly royalty payment to Byrider would be $6,715.00.
The Multi-Location Flat Rate is an alternative to the standard royalty fee structure, potentially offering franchisees with multiple locations a more predictable and possibly lower overall royalty payment. However, to qualify for and maintain the MLFR, the franchisee and their affiliates must maintain at least 51% common equity ownership and voting control among all Byrider businesses they own. Failure to meet this ownership qualification or any non-compliance with the franchise agreement will result in the franchisee reverting to the standard royalty fee structure.
It's important to note that Byrider retains the right to increase the royalty fee based on the National Consumer Price Index for All Urban Consumers (CPI-U), which could affect the monthly flat rate. Byrider will notify franchisees in writing by December 1st of each year regarding any changes to the royalty fees for the following calendar year. Prospective franchisees should carefully consider these potential increases and their impact on the overall cost of operating multiple Byrider locations under the MLFR agreement.