Can Card My Yard or its affiliates be designated as approved suppliers for certain items?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
We have designated ourselves or our affiliates as approved or designated suppliers for certain items as described above in this Item 8.
We also have the right to make available to you for resale in the Card My Yard business merchandise identifying the Card My Yard Concept. This may include Card My Yard memorabilia, like T-shirts, cups and other promotional products. If we make this type of merchandise available, we will require you to purchase it from us, our affiliate or a supplier we designate in amounts necessary to meet your customer demand.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–32)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Card My Yard retains the right to designate itself or its affiliates as the sole approved or designated suppliers for certain products and services. Currently, Card My Yard is the only approved supplier for all yard letters and signs used in the business, as well as any "Card My Yard" branded items. However, the initial inventory of these items is provided to the franchisee at no cost beyond the initial franchise fee.
Prospective franchisees should be aware that Card My Yard can change or add designated suppliers at any time, provided they give written notice. As of the FDD date, franchisees must purchase yard stakes from Card My Yard or their designated third-party source, Parker Davis, located in Charlotte, North Carolina. If a franchisee wishes to use a different supplier for an item that Card My Yard requires to be purchased from an approved supplier, the franchisee must submit a written request for approval and bear the costs associated with the supplier approval process, including testing and inspection.
Card My Yard estimates that initial required purchases from approved or designated suppliers will range from 60% to 80% of the total initial purchases necessary to establish the business. For ongoing operations, required purchases are estimated to be between 20% and 30% of total annual purchases. Franchisees are also obligated to comply with Card My Yard's specifications for all supplies, materials, fixtures, furnishings, equipment, and computer systems used in the business, as detailed in the operations manual.
It is important to note that Card My Yard reserves the right to negotiate purchase arrangements with suppliers for the benefit of franchisees, and Card My Yard or its affiliates may receive rebates or other consideration from these approved or designated sources. However, the FDD states that Card My Yard will not provide material benefits to franchisees based upon their use of designated or approved suppliers. Franchisees should carefully consider these supplier restrictions and obligations, as they impact the costs and operational requirements of running a Card My Yard franchise.