What is the basis for the monthly amount a Card My Yard franchisee must contribute to a Cooperative?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Cooperative is established for a geographic area that includes all or part of the Protected Area, you will be required to contribute to the Cooperative a monthly amount set forth in the Cooperative's governing documents, and you must execute the applicable Cooperative documents promptly upon our request and participate as a member of the Cooperative.
Among other things, this means that (i) you must submit to the Cooperative and to us all statements and reports that we or the Cooperative may require, and (ii) you must contribute to the Cooperative the amounts required by the Cooperative's governing documents.
Your Cooperative contributions will not be applied to satisfy any portion of your local advertising requirement under Section IX.A.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if a Cooperative is established in an area that includes a franchisee's protected territory, the franchisee is required to contribute a monthly amount. The specific amount is determined and outlined in the Cooperative's governing documents. The franchisee must adhere to these documents and promptly participate as a member of the Cooperative upon request.
This means that the franchisee's financial obligation to the Cooperative is not arbitrarily set by Card My Yard but is instead based on the rules and guidelines established within the Cooperative's own governing documents. These contributions are specifically for administering advertising programs and developing promotional materials within the local advertising area.
It is important to note that these Cooperative contributions are separate from and do not count towards the franchisee's local advertising requirements as detailed in Section IX.A of the Franchise Disclosure Document. Therefore, franchisees need to budget for both Cooperative fees and local advertising expenses. Prospective franchisees should carefully review the Cooperative's governing documents to understand the exact monthly contribution amount and how the funds are utilized for advertising and promotional activities in their area.