How does Card My Yard classify freight billed to customers in terms of sales revenue?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Sales" does notinclude (i)salestaxes collected from customers of the Card My Yard business; (ii) tips or gratuities paid directly to your employees by customers of the Card My Yard business or paid to you and turned over by you to your employees in lieu of direct tips or gratuities; (iii) rush fees paid to the Card My Yard business; (iv) delivery fees paid to the Card My Yard business; (v) returns to shippers or manufacturers; and (vi) proceeds from isolated sales of trade fixtures not constituting any part of the products and services offered for sale at
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, delivery fees paid to the Card My Yard business are not included in gross sales. Gross sales are important because they are used to calculate royalty fees.
This means that Card My Yard franchisees do not have to pay royalties on delivery fees charged to customers. This can be a significant benefit, as delivery fees can be a substantial source of revenue for some Card My Yard businesses. Not including delivery fees in gross sales reduces the overall royalty burden on the franchisee, potentially increasing their profitability.
It is important for prospective franchisees to understand exactly what constitutes gross sales, as this figure is used to calculate royalties and other fees payable to Card My Yard. By excluding delivery fees from gross sales, Card My Yard provides a potential cost savings for its franchisees, aligning with common practices in service-oriented franchises where delivery charges are often treated separately from core service revenue for royalty calculation purposes.