What is the Royalty Fee for a Byrider Legacy Interim Founder Franchisee or Standard 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, the monthly royalty fee for a Legacy Interim Founder Franchisee or Standard Franchisee operating six Byrider businesses under the Multi-Location Flat Rate (MLFR) is $6,715. This flat rate applies as long as the franchisee meets specific ownership qualifications, maintaining at least 51% common equity ownership and voting control across all Byrider businesses they own.
The Multi-Location Flat Rate supersedes the standard royalty fee structure outlined in other sections of the franchise agreement, provided the franchisee continues to qualify for and elect to pay the MLFR, operates at least two Byrider businesses, and remains compliant with all agreements with Byrider and its affiliates. If a franchisee fails to meet these conditions, they will revert to the standard royalty fee obligations.
Byrider retains the right to increase the royalty fee based on the National Consumer Price Index for All Urban Consumers (CPI-U), with any changes communicated in writing by December 1st of each year. This potential increase should be considered by prospective franchisees as it could affect the overall cost of operating multiple locations. The MLFR structure is designed to provide a more predictable royalty expense for multi-unit operators, but it's crucial to maintain compliance with the ownership and operational requirements to avoid reverting to potentially higher standard royalty fees.