factual

When is the transfer fee due for a Byrider franchise?

Byrider Franchise · 2025 FDD

Answer from 2025 FDD Document

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Name of Fee 1 Amount Due Date Remarks
Advertising $2,450 Monthly This is paid to Byrider Franchising Partners. Byrider Franchising Partners may increase the monthly contribution, but such increase(s) will not exceed $400.00 in the aggregate during any 24-month period. The Advertising Fee is used exclusively for the promotion and advertising of the business of all franchisees of the System. All money goes toward franchisees (not the franchisor corporate entity).
Fee
National Advertising Fund contribution Currently, you are not required to contribute to any National Advertising Fund If due, monthly Byrider Franchising Partners may require you to contribute to a National Advertising Fund, if established. However, your total contributions to any National Advertising Fund (if established) are subject to the Advertising Spend Cap (4% of your Gross Sales (Byrider Vehicle Sales)). See Note 5 below.
Transfer $5,000 Before transfer takes place Covers the cost of training the new franchisee and other costs should you sell, transfer or assign your i

Source: Item 6 — Other Fees (FDD pages 21–32)

What This Means (2025 FDD)

According to Byrider's 2025 Franchise Disclosure Document, the transfer fee is due before the transfer takes place. The transfer fee is $5,000. This fee covers the cost of training the new franchisee and other costs associated with the sale, transfer, or assignment of interest in the Byrider business.

For a prospective Byrider franchisee, this means that if they decide to sell their franchise, they will need to pay Byrider $5,000 before the new owner takes over. This fee is in place to ensure that the new franchisee receives adequate training and to cover any administrative costs Byrider incurs during the transfer process.

It is important for potential franchisees to factor this fee into their financial planning, especially if they anticipate selling their franchise in the future. Understanding the timing of this payment is crucial for managing cash flow during the transfer process.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.