What was the cost of sales for Card My Yard in 2023?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 2022 | 2021 | |
|---|---|---|
| Revenues: | ||
| Royalties | $ 2,349,533 $ 2,658,960 $ 3,957,477 | |
| Franchise fees | 400,660 431,653 | 593,100 |
| Boutique sales | 764,972 1,243,391 | 2,667,220 |
| CARDference fees | 6,400 38,950 | - |
| Total revenues | 3,521,565 4,372,954 | 7,217,797 |
| Cost of sales | 710,518 1,029,769 | 2,147,137 |
| Gross profit | 2,811,047 3,343,185 | 5,070,660 |
| Operating expenses: | ||
| Advertising and promotion | 126,163 137,038 | 241,493 |
| Amortization | 1,459,986 1,459,983 | 1,459,980 |
| Conferences | 15,103 230,890 | 42,611 |
| Credit card fees | 343,045 410,140 | 606,030 |
| Depreciation | 14,949 14,948 | 11,333 |
| Insurance | 54,760 63,906 | 50,969 |
| Legal and professional | 303,127 295,456 | 328,966 |
| Management and board fees | 459,742 450,000 | 370,834 |
| Payroll expenses and benefits | 1,717,718 1,449,774 | 2,032,952 |
| Rent | 165,150 151,775 | 125,254 |
| Software | 241,922 255,850 | 225,151 |
| Other | 128,731 100,092 | 176,013 |
| Total operating expenses | 5,030,396 5,019,852 | 5,671,586 |
| Loss from operations | (2,219,349) (1,676,667) | (600,926) |
| Other income (expense): | ||
| Interest expense | (23,948) - | - |
| Charitable contributions | (15,000) (20,750) | (37,233) |
| Other income | 914 261 | 15,915 |
| Other expense, net | (38,034) (20,489) | (21,318) |
| Net loss | (2,257,383) (1,697,156) | (622,244) |
| Member's equity, beginning of year | 10,783,542 12,480,698 | 14,931,385 |
| Member distributions | - - | (1,828,443) |
| Member's equity, end of year | $ 8,526,159 $ 10,783,542 $ 12,480,698 |
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the cost of sales for 2023 was $710,518. This figure represents the direct costs attributable to the production and sale of goods or services by Card My Yard. It's a key metric for understanding the company's profitability and operational efficiency.
Cost of sales includes expenses like the cost of materials used to create the yard greetings, labor directly involved in production, and any other costs directly tied to providing the service. Analyzing this figure in relation to total revenues provides insight into the gross profit margin, which is a critical indicator of financial health. A lower cost of sales relative to revenue generally indicates higher profitability.
Prospective franchisees should pay close attention to the cost of sales as it directly impacts their potential earnings. Understanding what factors contribute to this cost and how it might fluctuate is essential for financial planning. For instance, changes in supplier prices for yard signs or variations in labor costs could affect the cost of sales.
It's also worth noting that the FDD provides cost of sales figures for previous years, allowing potential franchisees to identify trends and assess the stability of these costs over time. Comparing the 2023 cost of sales to those of 2022 and 2021 can reveal whether these costs are increasing, decreasing, or remaining relatively constant, which can inform a franchisee's financial projections.