What additional remarks or explanations are provided regarding the fees for a Card My Yard franchise?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
Notes:
- (1) All fees and expenses described above are non-refundable and, unless otherwise indicated, are imposed uniformly by, and are payable to, us. Unless we have noted differently, we may increase these amounts based on changes in market conditions, our cost of providing services and future policy changes, but we have no present plans to increase any fees.
- (2) "Gross Sales" is the total selling price of all services and products and all income of every other kind and nature related to your Card My Yard business, whether for cash or credit and regardless of collection in the case of credit. "Gross Sales" includes all proceeds from the sale of coupons and gift cards/certificates. However, when those coupons or gift cards/certificates are redeemed, you are not required to count the retail value of the services provided upon redemption in determining Gross Sales for royalty purposes or for other fees calculated in respect of Gross Sales, except that if you fail to record and report sales proceeds for royalty purposes when a coupon or gift card/certificate is sold, or if coupons or gift cards/certificates are distributed free of charge without our written consent, then you will be required to pay us royalties based on the retail value of the services provided in exchange for the coupon or gift card/certificate. "Gross Sales" does not include (i) sales taxes collected from customers of the Card My Yard business; (ii) tips or gratuities paid directly to your employees by customers of the Card My Yard business or paid to you and turned over by you to your employees in lieu of direct tips or gratuities (so long as such tips or gratuities have been clearly marked as such); (iii) rush fees paid to the Card My Yard business; (iv) delivery fees paid to the Card My Yard business; (v) returns to shippers or manufacturers; and (vi) proceeds from isolated sales of trade fixtures not constituting any part of the products and services offered for sale at the Card My Yard business or having any material effect upon the ongoing operation of the Card My Yard business.
- (3) The minimum monthly royalty amounts, broken down on a month-to-month basis, shall be as set forth
in the following tables:
[Item 6: OTHER FEES]
NOTE: Renewing franchisees will be subject to the 5 th year minimum royalty requirements throughout the term of any renewal franchise agreement.
NOTE: All Transferrees acquiring an existing Card My Yard business from a franchisee must sign our then-current Franchise Agreement within thirty days of approval of the transfer by us, and payment of applicable transfer. If you seek to transfer or resell your business, failure to follow this process will incur the then-current termination fees and result in termination of your franchise.
[Item 6: OTHER FEES]
Local Marketing and Cooperatives
You must complete at least 24 promotional yard greeting services (worth a total of approximately $2,400) during each 12 -month period under your agreement, and you must also spend at least the following amounts on local advertising: (a) $300 in the first 12 months of your agreement, (ii) $500 in months 13 through 24 of your agreement, and (iii) $800 in each 12 month period thereafter. No advertising cooperatives have been established as of the date of this disclosure document, but if established by us for your market, you will be required to contribute to such Cooperative.
On demand These fees are typically paid directly to the local marketing service providers, but if you fail to spend the required minimum amount on local marketing (or fail to complete the minimum number of promotional yard greetings services) then we may require you to pay the corresponding amounts to us so that we may purchase local marketing services for your Protected Area. Expenses considered to be local marketing include, but are not limited to, promotional yard set -ups, local coupons, Internet/social media ads, sponsorships, and/or PTA/PTO events. We may increase the minimum local advertising requirements upon 30 days' written notice to you. In addition to local spending requirements, you must post at least 5 promotional messages on both Facebook and Instagram each week.
We have not done so yet, but we have the right to designate any geographic area in which two or more company owned or franchised Card My Yard businesses are located as a region for purposes of establishing an advertising cooperative ("Cooperative"). Any Cooperative may be terminated by us, in our sole discretion, upon written notice to you. If we establish a Cooperative that includes your Card My Yard business, you will be required to contribute an amount set forth in the Cooperative's governing documents. Amounts you contribute to a Cooperative will not be applied to satisfy any portion of your individual local advertising requirements. If we have company -owned Card My Yard
| Marketing | Currently $0. If | If implemented, we will | businesses that are located in your Cooperative territory, such company owned Card My Yard businesses will NOT have voting power to increase your required Cooperative contributions. All or a portion of your contributions to a Cooperative may be used to establish and/or maintain a website(s) focused on promoting the Card My Yard Concept in and around your market area. See Note 2 for the definition of Gross |
|---|---|---|---|
| Fund | implemented, an amount equal to the greater of: (a) one-half of one percent (0.5%) of the Card My Yard business' monthly Gross Sales or (b) $25 per month in the first 12 months of your agreement; $40 per month in months 13 through 24; and $65 per month in each 12- month period thereafter. | withhold these funds in the same manner as the royalty payments described above in this Item 6. | Sales. The Marketing Fund contribution is in addition to the local advertising requirement. We may increase the required contribution amount on not less than 30 days' written notice to you (up to a maximum of 2% of Gross Sales, subject to the monthly minimum payments). We may, in our sole discretion, change the frequency of the Marketing Fund Contributions (e.g. change to monthly payments) upon written notice to you. |
| Interest and Late Fees | Interest of 18% per annum or the maximum rate allowed by applicable law, or, at our option, $100 for each failure to timely pay an amount owed under the Franchise Agreement | On demand | We may charge interest or a late fee for any delinquent amounts due under the Franchise Agreement. |
| Additional Training at our offices | At our option, a per diem rate of $150 a day for each trainer. | Before additional training | See Item 11. In addition to our fees, you must also pay all of the costs and expenses of your personnel attending training |
| On-site Remedial Training | The then-current per diem fee for remedial training, plus all of our costs and expenses related to providing such training. Our current per diem rate is $200 per trainer. | When billed. | If you ask or if we believe it is appropriate, we will (subject to our trainers' availability) provide trained representatives to conduct on-site remedial training at your Card My Yard business. |
| --------------------------------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |
| Zip Code Change Fee | $1,000 each time you change a zip code(s) in your Protected Area. | Prior to our preparation of the applicable zip code change addendum. | We have the right, in our sole discretion, to approve or disapprove your request to change any zip code(s) in your Protected Area. If we approve your request, you must pay us the zip code change fee prior to our preparation of a zip code change addendum. |
| Transfer Fee | An amount equal to the greater of: (a) $3,000, or (b) 5% of the applicable sale/transfer price (whether for cash or other consideration). | With transfer application. | You must pay us a transfer fee upon any transfer, provided that if you are an individual transferring all of your rights and obligations to an entity wholly owned by you in accordance with Section XV.C. of the franchise agreement, then your transfer fee will be limited to an amount equal to our out-of-pocket costs and expenses (including legal and accounting fees and costs) related to such transfer. The transfer fee requirement is triggered by a transfer of any direct or indirect interest in you (i.e. the franchisee entity), the Franchise Agreement (including transfer of any zip codes or other partial territorial rights under the Franchise Agreement) or the assets of the franchised business. |
| Renewal Fee | $3,000 | Upon renewal of the Franchise Agreement | In order to renew your franchise agreement you must, among other things, pay us the renewal fee in a lump sum payment. |
| Indemnification | Varies according to loss | On demand | You must indemnify us when certain of your actions result in loss to us. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, several additional remarks and explanations pertain to the various fees franchisees may encounter. All fees and expenses are non-refundable and generally paid to Card My Yard. While Card My Yard may increase fees due to market conditions, cost of services, or policy changes, there are no current plans to do so. "Gross Sales" is defined as the total selling price of all services and products related to the Card My Yard business, including proceeds from coupons and gift cards, but excludes sales taxes, tips to employees, rush fees, delivery fees, returns, and proceeds from isolated sales of trade fixtures. Renewing franchisees will be subject to the 5th-year minimum royalty requirements throughout the term of any renewal franchise agreement. Also, all transferees acquiring an existing Card My Yard business from a franchisee must sign the then-current Franchise Agreement within thirty days of approval of the transfer by Card My Yard, and payment of applicable transfer. Failure to follow this process will incur the then-current termination fees and result in termination of the franchise.
The document also clarifies aspects of local marketing and cooperative advertising. Franchisees must complete at least 24 promotional yard greeting services (worth approximately $2,400) each year and spend specified minimum amounts on local advertising: $300 in the first year, $500 in the second, and $800 annually thereafter. These amounts are typically paid to local marketing service providers, but Card My Yard may require direct payment if the franchisee fails to meet these obligations, to enable Card My Yard to purchase local marketing services. Expenses considered local marketing include promotional yard set-ups, local coupons, Internet/social media ads, sponsorships, and PTA/PTO events. Franchisees must also post at least 5 promotional messages weekly on Facebook and Instagram. Card My Yard may establish advertising cooperatives in regions with multiple locations, requiring franchisees to contribute as per the cooperative's governing documents; these contributions do not count toward individual local advertising requirements.
Additional fees include a marketing fund contribution, currently $0 but potentially increasing to a maximum of 2% of Gross Sales (subject to minimum monthly payments), plus interest and late fees of 18% per annum (or $100) for overdue amounts. On-site remedial training is available at a rate of $200 per trainer per diem, plus associated costs. A zip code change fee of $1,000 applies each time a franchisee alters a zip code within their protected area. The transfer fee is the greater of $3,000 or 5% of the sale price, while the renewal fee is $3,000. Franchisees are also responsible for indemnifying Card My Yard against losses resulting from their actions. These stipulations provide franchisees with a comprehensive understanding of the financial obligations and potential costs associated with operating a Card My Yard franchise.