What criteria must approved or designated suppliers for Card My Yard demonstrate on a continuing basis?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
ment that a majority of the Card My Yard businesses then operated by us or our Affiliates have made or are utilizing best efforts to make such improvements.
E. Sourcing.
- (1) You agree to comply with all of our standards and specifications for the purchase of all inventory, supplies, materials, fixtures, furnishings, equipment, Computer Systems, and other products used or offered for sale at the Card My Yard business. If we have approved or designated suppliers (which may include us or our Affiliates or third party manufacturers, distributors and other sources) for any such item, you agree to obtain these items from those suppliers. Our approved or designated suppliers are those who demonstrate on a continuing basis the ability to meet our standards and specifications; who have adequate quality controls and the capacity to supply the needs of the Card My Yard business franchise network promptly and reliably over an extended period of time; and who have been approved in writing by us and who have not thereafter been disapproved by us. We may designate ourselves, our Affiliates or a third party as an approved or designated supplier, or as the sole approved or designated supplier of any item. You agree that we and our Affiliates may derive revenue based on your purchases and leases (including, without limitation, from charging you for products and services we or our Affiliates provide to you and from payments made to us or our Affiliates by suppliers that we designate or appr
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, approved or designated suppliers must consistently demonstrate the ability to meet Card My Yard's standards and specifications. These suppliers must also maintain adequate quality controls and possess the capacity to promptly and reliably supply the needs of the entire Card My Yard franchise network over an extended period. Furthermore, these suppliers must receive written approval from Card My Yard and must not be subsequently disapproved.
Card My Yard retains the right to designate themselves, their affiliates, or a third party as an approved or sole-approved supplier for any item. Franchisees are obligated to purchase items from these approved suppliers. Card My Yard and its affiliates may also derive revenue from franchisee purchases and leases, including charges for products and services provided to franchisees and payments from designated or approved suppliers.
If a franchisee wishes to use an item or service not yet evaluated by Card My Yard or purchase from a non-approved supplier, they must submit a written request for approval. Card My Yard is not obligated to approve any particular supplier. They have the right to request information, specifications, and samples to assess compliance with their standards and criteria. Card My Yard may also inspect the supplier's facilities and test samples, with the franchisee or proposed supplier bearing the costs of inspection and testing, including a potential fee of $300 for each inspection and test conducted.
Card My Yard may condition supplier approval on factors such as product quality, prices, consistency, reliability, financial capability, labor relations, client relations, delivery frequency, purchase concentration, and service standards. Card My Yard reserves the right to periodically reinspect approved suppliers and revoke approval if they fail to meet the criteria. Franchisees must discontinue using a supplier if their approval is revoked, and failure to comply with these sourcing provisions constitutes a material breach of the franchise agreement.