Can the Card My Yard advertising fund borrow money to cover deficits?

According to Card My Yard's 2025 Franchise Disclosure Document, the advertising fund may borrow money to cover deficits. Specifically, Card My Yard may spend more on behalf of the fund in any fiscal year than the aggregate contribution of all Card My Yard businesses. To cover these deficits, the fund may borrow from Card My Yard or other sources. Conversely, any surplus in the fund may be invested for future use.

This policy has several implications for franchisees. It provides Card My Yard with flexibility in managing the advertising fund, allowing them to invest in advertising opportunities even if current contributions are insufficient. This could lead to increased brand awareness and potentially benefit franchisees through enhanced marketing efforts.

However, it also introduces a degree of uncertainty. While Card My Yard can borrow to cover deficits, there is no guarantee that they will do so. Additionally, franchisees have limited control over how the fund is managed, as Card My Yard has sole discretion over the advertising programs. Franchisees should inquire about the historical performance of the fund, including instances where borrowing has occurred, to better understand the potential impact on their business.