Do Card My Yard cooperative contributions count toward the local advertising requirement?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
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, contributions to advertising cooperatives do not count towards satisfying the local advertising requirements. The document specifies that if a cooperative is established in a franchisee's area, the franchisee is required to contribute a monthly amount as outlined in the cooperative's governing documents.
This contribution is separate from the local advertising spending requirements detailed in Section IX.A of the agreement. Section IX.A requires franchisees to spend specific amounts on local advertising within their protected area, such as $300 during the first 12 months, $500 in months 13-24, and $800 annually thereafter. Franchisees must also post at least 5 promotional messages on both Facebook and Instagram each week.
This means that Card My Yard franchisees must budget for both cooperative advertising contributions and the mandatory local advertising expenditures. The FDD also states that franchisees must submit reports detailing their local advertising expenditures, and Card My Yard has the right to review their books to verify these expenditures. If a franchisee fails to meet the local advertising spending requirements or complete the minimum number of promotional yard greeting services, Card My Yard may require them to pay the unexpended amounts to be used for local advertising in the protected area.