What section of the Byrider Franchise Agreement is deleted and replaced regarding the Royalty Fee for franchisees who qualify for the Multi-Location Flat Rate?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Multi-Location Flat Rate Royalty. In the event Franchisee qualifies for, or has previously qualified for and elected to pay, the Multi-Location Flat Rate ("MLFR"), the Company will allow Franchisee to pay the MLFR instead of the Royalty Fee described above in Sections 1-3 in accordance with the terms and conditions set forth below:
- A. Royalty Fee. Section 3.10 of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:
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 the amount calculated monthly as follows:
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to the 2025 Byrider Franchise Disclosure Document, Section 3.10 of the Franchise Agreement is deleted and replaced in its entirety for franchisees who qualify for the Multi-Location Flat Rate (MLFR). This change is outlined in an addendum to the franchise agreement.
For franchisees who qualify for the Multi-Location Flat Rate, Byrider will allow them to pay the MLFR instead of the standard royalty fee, as long as they meet specific conditions. These conditions include continuing to qualify for and electing to pay the MLFR, operating at least two Byrider businesses, and remaining in compliance with the Franchise Agreement and all other agreements with Byrider and its affiliates.
If a franchisee fails to meet these conditions, they will be required to comply with the original royalty fee obligations outlined in Sections 1-3 of the addendum. The company reserves the right to increase the royalty fee set forth in Section 3.10 of the Franchise Agreement, as amended by the addendum, based on the National Consumer Price Index for All Urban Consumers (CPI-U). Any such increase will be applied uniformly to all franchisees under the same form of franchise agreement, and Byrider will notify franchisees in writing by December 1st of each year regarding any changes for the following calendar year.