When does Card My Yard collect initial franchise fees?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to successfully complete our initial training program to our satisfaction within 60 days after executing this Agreement, we may, at our option, terminate this Agreement upon written notice to you and retain 50% of your initial franchise fee.
The other 50% of your initial franchise fee will be returned to you.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
The 2025 Card My Yard Franchise Disclosure Document addresses the initial franchise fee in the context of early termination due to failure to complete the initial training program. If a franchisee does not successfully complete the initial training program to Card My Yard's satisfaction within 60 days after signing the Franchise Agreement, Card My Yard has the option to terminate the agreement.
In the event of such a termination, Card My Yard will retain 50% of the initial franchise fee. The remaining 50% of the initial franchise fee will be returned to the franchisee. This clause indicates that the initial franchise fee is collected upon or shortly after signing the agreement, as the 60-day window for training completion begins after the agreement is executed.
This policy protects Card My Yard by compensating them for their time and resources spent on a franchisee who does not meet their standards. It also provides a partial refund to the franchisee, acknowledging that the business did not launch. Prospective franchisees should consider the implications of this policy and ensure they are fully prepared to commit to and complete the training program within the specified timeframe.