What is the definition of 'Net Proceeds' for a Card My Yard franchise?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
written notice to you. The term "Net Proceeds" shall mean the total amount paid by your customers, calculated on a weekly basis, less (i) your applicable royalty fees, Marketing Fund contributions (if applicable) and other fees or amounts owed to us under this Agreement, (ii) amounts paid by your customers for sales taxes, and (iii) any other amounts you may otherwise owe to us or our affiliates. If you receive any revenues or other consideration directly from your customers, rather than as Net Proceeds we remit to you, then you must send all such revenues or other consideration directly to us within five (5) days of your receipt.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Net Proceeds are defined as the total amount paid by customers on a weekly basis, less specific deductions. For a Card My Yard franchisee, this means the revenue they actually receive is not the full amount customers pay.
The deductions from the gross customer payments include: royalty fees, Marketing Fund contributions (if applicable), and any other fees or amounts owed to Card My Yard under the Franchise Agreement. It also includes amounts paid by customers for sales taxes. Additionally, any other amounts the franchisee may owe to Card My Yard or its affiliates are deducted to arrive at the Net Proceeds.
Card My Yard distributes Net Proceeds to franchisees every Friday, although this schedule is subject to change with written notice. If a franchisee receives revenues directly from customers instead of through Card My Yard's payment processing system, they must remit those revenues to Card My Yard within five days. This system ensures that Card My Yard can accurately calculate and distribute Net Proceeds after deducting all applicable fees and taxes.