Under what conditions can Byrider increase the Volume Surcharge?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company and Franchisee acknowledge and agree that the Company reserves the right to increase the Volume Surcharge set forth in Section 3.10 of the Franchise Agreement, as amended by this Addendum, and the Monthly Combined Royalty Cap by the National Consumer Price Index for All Urban Consumers (CPI-U) – All Items (1982-1984 = 100) for the most recent 12-month period from October through September as published by the U.S. Department of Labor, or a successor index. Any increase will be uniformly applied to all franchisees under the same form of franchise agreement. The Company will notify Franchisee in writing on or before December 1st of each calendar year as to any changes in the amounts for the following calendar year.
Source: Item 22 — Contracts (FDD pages 87–88)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, Byrider reserves the right to increase the Volume Surcharge. This increase is tied to the National Consumer Price Index for All Urban Consumers (CPI-U), specifically the All Items index (1982-1984 = 100), which tracks price changes over the most recent 12-month period from October through September as published by the U.S. Department of Labor, or any successor index.
Any such increase to the Volume Surcharge will be applied uniformly to all franchisees operating under the same franchise agreement. Byrider is obligated to provide written notification to franchisees on or before December 1st of each calendar year, detailing any changes to the Volume Surcharge that will take effect for the following calendar year.
For a prospective Byrider franchisee, this means that the Volume Surcharge, which is initially set at $112.00 for every vehicle sold at retail above 75 vehicles per location per month, could increase over time based on the CPI-U. Franchisees should factor in potential increases to this surcharge when projecting their costs and revenues. It is important to note that Byrider must notify franchisees in writing by December 1st of any changes for the upcoming year, allowing franchisees some time to adjust their financial planning.