What is a Card My Yard advertising cooperative?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to designate any geographic area in which two (2) or more company-owned or franchised Card My Yard businesses are located as a region for purposes of establishing an advertising cooperative ("Cooperative").
If we do, each Cooperative will be organized and governed as, and will begin operation on a date, we determine.
Any Cooperative may be terminated by us, in our sole discretion, upon written notice to you.
Cooperatives will be organized for the exclusive purpose of administering advertising programs and developing promotional materials for local advertising and will be operated solely as a conduit for the collection and expenditure of advertising contributions.
If a Cooperative is established for a geographic area that includes all or part of the Protected Area, you will be required to contribute to the Cooperative a monthly amount set forth in the Cooperative's governing documents, and you must execute the applicable Cooperative documents promptly upon our request and participate as a member of the Cooperative.
Among other things, this means that (i) you must submit to the Cooperative and to us all statements and reports that we or the Cooperative may require, and (ii) you must contribute to the Cooperative the amounts required by the Cooperative's governing documents.
Your Cooperative contributions will not be applied to satisfy any portion of your local advertising requirement under Section IX.A.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, an advertising cooperative, or "Cooperative," is a regional group of Card My Yard businesses (both franchised and company-owned) designated by the franchisor for the purpose of administering advertising programs and developing promotional materials for local advertising. These cooperatives operate solely as a channel for collecting and spending advertising contributions.
If Card My Yard establishes a Cooperative in an area that includes a franchisee's protected area, the franchisee is required to contribute a monthly amount as defined in the Cooperative's governing documents. Franchisees must also execute the Cooperative's documents promptly and participate as a member. This participation includes submitting required statements and reports to both the Cooperative and Card My Yard, as well as contributing the necessary amounts.
It's important to note that contributions to the Cooperative do not count towards fulfilling the franchisee's individual local advertising requirements, which are separate. Card My Yard retains the right to terminate any Cooperative at its discretion with written notice. This structure ensures that advertising efforts are coordinated regionally, but it also adds an additional layer of financial obligation for franchisees beyond their individual advertising commitments.