How does Card My Yard classify the related freight costs associated with customer billing?
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
the Card My Yard business or having any material effect upon the ongoing operation of the Card My Yard business.
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 used to calculate royalties and other fees. This means that Card My Yard franchisees do not have to pay royalties on delivery fees charged to customers.
This exclusion of delivery fees from gross sales could be beneficial for franchisees as it reduces the base amount on which royalties are calculated. It is fairly common in the franchise industry to exclude certain charges like sales tax from gross sales, but the treatment of delivery fees can vary.
Prospective franchisees should confirm with Card My Yard whether this policy of excluding delivery fees from gross sales is consistently applied and if there are any conditions or limitations to this exclusion. Understanding how these fees are treated can help in accurately projecting revenue and royalty obligations.