Can Card My Yard derive revenue from franchisee purchases and leases?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
of this Agreement 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, Card My Yard and its affiliates can derive revenue from franchisee purchases and leases. This includes revenue from charging franchisees for products and services that Card My Yard or its affiliates provide. It also includes payments from suppliers that Card My Yard designates or approves for franchisees to use.
Specifically, Card My Yard requires franchisees to purchase yard letters/signs (or related materials and equipment) totaling at least $500 each year from them. This requirement ensures a consistent supply of materials across the franchise network and provides Card My Yard with a direct revenue stream from its franchisees.
This arrangement is common in franchising, where franchisors often act as suppliers to their franchisees. While this can ensure quality control and brand consistency, prospective franchisees should evaluate whether the required purchases are competitively priced and represent good value. Franchisees should also clarify if there are any restrictions on sourcing materials from alternative suppliers if Card My Yard's designated suppliers do not meet their needs or expectations, beyond the $500 annual requirement.