Am I responsible for reimbursing Card My Yard for the costs of the supplier approval process?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
If we require that an item be purchased from an approved supplier and you wish to purchase it from a supplier we have not approved, you must submit to us a written request for approval. You must not purchase or lease the item from the supplier until and unless we have approved the supplier in writing. We have the right to require you to submit information, specifications and samples to us to enable us to determine whether the item complies with our standards and specifications and that the supplier meets our criteria. We also have the right to inspect the supplier's facilities, and to have samplesfrom the supplier delivered to us or to an independent laboratory we designate for testing. We may condition our approval of a supplier on requirements relating to product quality, prices, consistency, reliability, financial compatibility, labor relations, client relations, frequency of delivery, concentration of purchases, standards of service (including prompt attention to complaints) or other criteria. We may re-inspect the facilities and products of any approved supplier and may revoke our approval upon the supplier's failure to continue to meet any of our then-current criteria. If we revoke our approval of any supplier, you must promptly discontinue use of that supplier. You must reimburse usfor the coststhat we incur in the supplier approval process. The costs for testing/inspection of a product will vary based on the testing required for the particular product, and we will provide an estimate of the costs to you before testing a product or inspecting any facilities. Nothing requires us to approve any particular supplier, and we will notify you of our approval or disapproval within 60 days after receiving all requested information. Our specifications for products and criteria for supplier approval are generally issued through written communications and are available to franchisees and approved suppliers.
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, if you want to use a supplier that Card My Yard hasn't already approved, you're responsible for covering the costs they incur to evaluate and potentially approve that supplier. This includes the expenses for testing and inspecting the supplier's products and facilities. The FDD states that the costs for product testing/inspection will vary based on the testing required for the particular product. Card My Yard will provide you with an estimate of these costs before they start testing a product or inspecting any facilities.
Card My Yard has the right to inspect the supplier's facilities, request samples for testing, and demand information and specifications to ensure the supplier meets their standards. Approval may depend on factors like product quality, pricing, financial stability, and service standards. Card My Yard can also re-inspect approved suppliers and revoke approval if they no longer meet the criteria. If a supplier's approval is revoked, you must stop using them immediately.
This policy ensures that all Card My Yard franchisees maintain a consistent level of quality and adhere to the brand's standards. However, it also means that you could face unexpected expenses if you wish to use a non-approved supplier. It is important to consider these potential costs and discuss them with Card My Yard before proceeding with a request for supplier approval. You should also be aware that Card My Yard is not obligated to approve any particular supplier, and they will notify you of their decision within 60 days of receiving all the necessary information.