What costs may the Card My Yard Marketing Fund be used to satisfy?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
We may use the Fund to satisfy the costs of producing video, audio and written advertising materials; administering regional and multi-regional advertising programs; developing and maintaining an Internet website; developing and maintaining gift card, membership and other customer loyalty programs; and supporting public relations, market research and other advertising, promotion and marketing activities. We are not required to make expenditures for you that are equivalent or proportionate to your Fund contributions or to ensure that any particular franchisee benefits directly or in proportion to its contributions to the Fund. Except for any portion of the Fund spent on website development and maintenance (a portion of which may include soliciting the sale of franchises using our website or websites primarily focused on franchise growth), the Fund is not used to solicit the
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 34–43)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the Marketing Fund, if established, can be used for specific advertising, promotion, and marketing activities. Card My Yard may use the fund to cover the costs of producing video, audio, and written advertising materials. It can also be used to administer regional and multi-regional advertising programs, which suggests a coordinated approach to marketing efforts across different areas.
Additionally, the Marketing Fund may be used for developing and maintaining an Internet website, which is crucial for online presence and customer engagement. It can also support the development and maintenance of gift card, membership, and other customer loyalty programs, which are designed to retain customers and encourage repeat business. Furthermore, the fund can be used to support public relations, market research, and other advertising, promotion, and marketing activities, indicating a broad scope of potential uses aimed at enhancing the Card My Yard brand and attracting customers.
However, the FDD specifies that the fund cannot be used to solicit the sale of franchises, except for the portion spent on website development and maintenance. Card My Yard also clarifies that franchisee contributions to the fund do not guarantee equivalent or proportionate expenditures in their specific area or direct benefits in proportion to their contributions. This means that while franchisees contribute to the fund, the franchisor has discretion over how the funds are allocated and spent, based on their assessment of the most effective marketing strategies.
Card My Yard also states that they will not use franchisee's contributions to defray any of their operating expenses, except for reasonable salaries, administrative costs, travel expenses, and overhead incurred in administering the Fund and its programs. This provides some assurance that the fund will primarily be used for marketing and advertising purposes, rather than covering the franchisor's general business costs. An annual statement of the Fund's operations will be prepared and made available to franchisees upon request, offering transparency into how the funds are being managed and spent.