Does the Ultra2 Royalty Fee for Byrider franchises apply to both vehicle sales and CNAC collections?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 6
OTHER FEES
| Name of Fee 1 | Amount | Due Date | Remarks |
|---|---|---|---|
| Ultra2 Royalty Fee | $5,500-$7,800 plus 1.65%-1.90% Gross Receipts | Monthly | Gross Sales (Byrider Vehicle Sales): (i) during first year of operation of the Business, $5,500 per month; (ii) during second year of operation of the Business, the greater of $6,700 or 1% of Gross S |
Source: Item 6 — Other Fees (FDD pages 21–32)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Ultra2 Royalty Fee applies to Gross Sales (Byrider Vehicle Sales). The table in Item 6 outlines the Ultra2 Royalty Fee, which ranges from $5,500 to $7,800 plus 1.65% to 1.90% of Gross Receipts, payable monthly. This fee structure is specifically tied to Gross Sales (Byrider Vehicle Sales). The minimum monthly payment associated with the Gross Sales component of the Ultra2 Royalty Fee will increase by 4.0% on January 1st of every other year, starting January 1, 2026.
For franchisees who joined the Byrider system prior to January 1, 2021, a different royalty structure applies. These 'Traditional Franchisees' pay a Traditional Royalty Fee based on both Gross Sales (Byrider Vehicle Sales) and Gross Receipts (CNAC Collections). The royalty for Gross Sales is the greater of $6,000 or 2.5% of Gross Sales, with maximum monthly payments varying based on the franchisee's category, such as $7,000 for 'Founder Franchisees'. Additionally, Traditional Franchisees pay 1% of Gross Receipts (CNAC Collections).
In summary, the Ultra2 Royalty Fee, applicable to franchisees joining after January 1, 2021, is based on Gross Sales (Byrider Vehicle Sales). Traditional Franchisees, however, pay a royalty based on both Gross Sales from vehicle sales and Gross Receipts from CNAC collections. This distinction is important for prospective franchisees to understand, as it affects the overall royalty obligations depending on when they joined the Byrider system.