Will the Card My Yard advertising fund be accounted for separately from other funds?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) The Fund will be accounted for separately from our other funds and will not be used to defray any of our general operating expenses, except for such reasonable salaries, administrative costs, travel expenses and overhead as we may incur in activities related to the administration of the Fund and its programs, including, without limitation, conducting market research; preparing advertising, promotion and marketing materials; and collecting and accounting for contributions to the Fund.
We may spend, on behalf of the Fund, in any fiscal year an amount greater or less than the aggregate contribution of all Card My Yard businesses to the Fund in that year, and the Fund may borrow from us or others to cover deficits or invest any surplus for future use.
All interest earned on monies contributed to the Fund will be used to pay advertising costs before other assets of the Fund are expended.
We will prepare an annual unaudited statement of monies collected and costs incurred by the Fund and furnish the statement to you upon written request.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the advertising fund, also referred to as the Marketing Fund, will be accounted for separately from Card My Yard's other funds. This means that the money franchisees contribute to the Fund will be tracked independently. These funds will not be used to cover Card My Yard's general operating expenses. However, the fund can be used to cover reasonable salaries, administrative costs, travel expenses, and overhead that Card My Yard incurs while administering the Fund and its programs. These programs include conducting market research, preparing advertising, promotion and marketing materials, and collecting and accounting for contributions to the Fund.
Card My Yard retains sole discretion over the creative concepts, materials, endorsements, and the geographic, market, and media placement and allocation of the advertising programs. The Fund may be used to pay for various advertising-related costs, such as preparing video, audio, and written advertising materials, administering advertising programs, purchasing media advertising, employing advertising agencies, developing and maintaining a website, and supporting customer loyalty programs and public relations.
Card My Yard may spend more or less than the total contributions to the Fund in any fiscal year and may borrow or invest money to cover deficits or surpluses. All interest earned on the Fund's monies will be used to pay advertising costs before other assets of the Fund are used. Card My Yard will prepare an annual unaudited statement of monies collected and costs incurred by the Fund, which will be provided to franchisees upon written request. This provides some transparency into how the advertising funds are being managed and spent.