What is the total payment due upon execution of the Area Development Agreement for Byrider?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
bleness of Development Schedule. The Franchisee approves of the foregoing development schedule as being reasonable and viable, and recognizes the development schedule is necessary to insure acceptable Byrider development of the Exclusive Development Area.
| B. | | Initial Franchise Fee. | The initial franchise fees are as follows: | |----|----------------------|----------------------------------------------------------------------|----------------------------------------------------------| | | 1. | 1st franchise: | $60,000.00 | | | 2. | 2nd franchise: | $35,000.00 | | | 3. | 3rd franchise: | $35,000.00 | | | 4. | 4th franchise: | $35,000.00 | | | | Total fee: | $165,000.00 |
- C. Payment Upon Closing. In conjunction with the execution of this Area Development Agreement, Franchisee shall pay to the Company $112,500.00, which represents the Initial Franchise Fee of $60,000.00 for the 1st franchise and a Development Fee of $17,500.00 for each of the 2nd-4th franchises. The Development Fee of $17,500.00 for each franchise shall be applied toward the Initial Franchise Fee for each of the 2nd-4th franchises, respectively, developed under the terms of this Area Development Agreement. The remaining $17,500.00 due for each of the 2nd-4th franchises shall be paid upon Franchisee's execution of the franchise agreement for the particular franchise.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the payment due upon execution of the Area Development Agreement is either $112,500.00 or $120,000.00. The amount depends on the version of the agreement. For one version, this payment includes an initial franchise fee of $60,000.00 for the first franchise and a development fee of $17,500.00 for each of the 2nd through 4th franchises. For the other version, the payment includes an initial franchise fee of $60,000.00 for the first franchise and a development fee of $20,000.00 for each of the 2nd through 4th franchises.
The development fee for each of the 2nd through 4th franchises will be applied toward the initial franchise fee for those franchises, respectively, as they are developed under the Area Development Agreement. The remaining balance of $17,500.00 or $20,000.00 due for each of these franchises is to be paid when the franchisee executes the franchise agreement for that particular franchise.
It is important to note that all fees paid under the Area Development Agreement are nonrefundable. This means that if a prospective Byrider franchisee decides not to proceed with developing all the franchises outlined in the agreement, they will not receive a refund of the initial payment.
Prospective franchisees should carefully review the Area Development Agreement within the FDD to confirm which payment amount applies to them and fully understand the terms and conditions, especially the non-refundable nature of the fees.