What action must a Card My Yard franchisee take if a supplier's approval is revoked?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
ment that a majority of the Card My Yard businesses then operated by us or our Affiliates have made or are utilizing best efforts to make such improvements.
E. Sourcing.
- (1) You agree to comply with all of our standards and specifications for the purchase of all inventory, supplies, materials, fixtures, furnishings, equipment, Computer Systems, and other products used or offered for sale at the Card My Yard business. If we have approved or designated suppliers (which may include us or our Affiliates or third party manufacturers, distributors and other sources) for any such item, you agree to obtain these items from those suppliers. Our approved or designated suppliers are those who demonstrate on a continuing basis the ability to meet our standards and specifications; who have adequate quality controls and the capacity to supply the needs of the Card My Yard business franchise network promptly and reliably over an extended period of time; and who have been approved in writing by us and who have not thereafter been disapproved by us. We may designate ourselves, our Affiliates or a third party as an approved or designated supplier, or as the sole approved or designated supplier of any item. You agree that we and our Affiliates may derive revenue based on your purchases and leases (including, without limitation, from charging you for products and services we or our Affiliates provide to you and from payments made to us or our Affiliates by suppliers that we designate or approve for some or all of our franchisees). We currently require you to purchase yard letters/signs (or related materials and equipment) totaling at least $500 each year from us.
- (2) If you wish to use any item or service that we have not yet evaluated or (for items that we require you to purchase from designated or approved suppliers) if you wish to purchase or lease any such item from a supplier that we have not yet approved, you must sub
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard FDD, franchisees must source inventory, supplies, materials, fixtures, furnishings, equipment, and computer systems according to Card My Yard's standards and specifications. If Card My Yard has approved or designated specific suppliers for certain items, franchisees must purchase those items from the approved suppliers. These suppliers must consistently meet Card My Yard's standards, have adequate quality controls, reliably supply the franchise network, and maintain written approval from Card My Yard.
If a franchisee wants to use a new item or purchase from a supplier not yet approved by Card My Yard, they must submit a written request for approval. The franchisee cannot purchase or lease the item from the unapproved supplier unless Card My Yard provides written approval.
The FDD excerpt does not explicitly state the actions a Card My Yard franchisee must take if a supplier's approval is revoked. It only states the requirements for sourcing from approved suppliers and the process for requesting approval of new suppliers. To fully understand the franchisee's obligations upon supplier disapproval, prospective franchisees should seek clarification from Card My Yard regarding the specific steps to take if a previously approved supplier is no longer approved.