Under what conditions is the initial franchise fee for a Byrider franchise refundable?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
M 5
INITIAL FEES
Franchise Agreement. You will pay a $60,000 lump sum franchise fee when you sign the Franchise Agreement. This initial franchise fee is refundable if Byrider Franchising Partners receives written notice from you within 60 days from the date of the Franchise Agreement and you sign the form of general release required by Byrider Franchising Partners. If you purchase additional franchises, you must pay the thencurrent nonrefundable initial franchise fee for each additional franchise. As of the date of this Disclosure Document, the initial franchise fee for each additional franchise is $35,000 (if you are a Traditional Franchisee, as provided below) or $40,000 (if you are an Ultra Franchisee, as provided below). The initial franchise fee for additional franchises is subject to change at the discretion of Byrider Franchising Partners without prior notice. Except as described above, the initial franchise fee is not refundable
Source: Item 5 — Initial Fees (FDD pages 19–21)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the initial franchise fee of $60,000 is refundable under specific conditions. A prospective franchisee can receive a refund of the initial franchise fee if Byrider Franchising Partners receives written notice from the franchisee within 60 days from the date of the Franchise Agreement. Additionally, the franchisee must sign a general release form required by Byrider Franchising Partners to be eligible for the refund.
It is important to note that this refund policy applies only to the initial franchise fee for the first franchise agreement. If a franchisee purchases additional franchises, the initial franchise fee for those additional franchises is nonrefundable. The initial franchise fee for each additional franchise is $35,000 for Traditional Franchisees and $40,000 for Ultra Franchisees.
This refund policy provides a limited window for franchisees to reconsider their investment decision after signing the Franchise Agreement. The 60-day period allows franchisees to conduct further due diligence or assess their readiness to proceed with the franchise. However, franchisees must adhere to the written notice and general release requirements to qualify for the refund. This type of conditional refund is relatively common in franchising, offering some protection to new franchisees while still ensuring Byrider can recoup costs if the franchisee backs out after the initial period.