Does Card My Yard have to approve a particular supplier proposed by a franchisee?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
ve for some or all of our franchisees). We currently require you to purchase yard letters/signs (or related materials and equipment) totaling at least $500 each year from us.
- (2) If you wish to use any item or service that we have not yet evaluated or (for items that we require you to purchase from designated or approved suppliers) if you wish to purchase or lease any such item from a supplier that we have not yet approved, you must submit a written request for approval to us. You cannot purchase or lease any such item unless the supplier has been approved in writing by us. We are not required to approve any
particular supplier. We will 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 send our representatives to inspect the supplier's facilities and to have samples from the supplier be delivered to us or to an independent laboratory designated by us for testing. You or the proposed supplier will be required to pay for the cost of the inspection and the test (including our administrative expenses) and reimburse us for any costs or expenses we incur in connection with the evaluation of your proposed supplier. In addition to your reimbursement obligation, we may,in oursole discretion, charge you a fee of $300 for each inspection and each test conducted. We may condition our approval of a supplier on requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations, client relations, frequency of delivery, concentration of purchases, standards of service (including prompt attention to complaints) or other criteria. We reserve the right to reinspect from time to time the facilities and products of any approved supplier and to revoke our approval of the supplier if the supplier fails to continue to meet any of our criteria. If we revoke our approval of any supplier, you
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees must get approval from Card My Yard before using a supplier that Card My Yard has not yet approved. The franchisee needs to submit a written request for approval. Card My Yard is not required to approve any particular supplier.
Card My Yard has the right to ask the franchisee to submit information, specifications, and samples to determine if the item from the supplier meets Card My Yard's standards. Card My Yard can also send representatives to inspect the supplier's facilities and have samples delivered to an independent laboratory for testing. The franchisee or the proposed supplier is responsible for covering the costs of inspection and testing, including Card My Yard's administrative expenses. Card My Yard may also charge a fee of $300 for each inspection and test conducted.
Card My Yard can set conditions for supplier approval related to product quality, prices, consistency, reliability, financial capability, labor relations, client relations, delivery frequency, purchase concentration, service standards, and other criteria. Card My Yard reserves the right to reinspect approved suppliers and revoke approval if they fail to meet the criteria. If approval is revoked, the franchisee must stop using that supplier. Failure to comply with these sourcing provisions is considered a material breach of the agreement.