Can Card My Yard designate itself or its affiliates as the sole approved supplier for any item?
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, Card My Yard has the authority to designate itself, its affiliates, or a third party as the sole approved supplier for any item a franchisee needs to operate their business. This means that franchisees may be required to purchase certain items exclusively from Card My Yard or its designated suppliers.
This requirement ensures that Card My Yard can maintain quality control and uniformity across all franchise locations. The approved suppliers must consistently meet Card My Yard's standards and specifications, have adequate quality controls, and reliably supply the needs of the Card My Yard franchise network. Card My Yard requires franchisees to purchase yard letters/signs (or related materials and equipment) totaling at least $500 each year from them.
As a result, Card My Yard and its affiliates may derive revenue from franchisee purchases and leases, including direct charges for products and services and payments from designated suppliers. While this arrangement allows Card My Yard to control quality and potentially generate additional revenue, it also limits the franchisee's ability to seek out potentially lower-cost or alternative suppliers. Franchisees are required to seek approval from Card My Yard if they wish to use items or services that have not been evaluated or purchase/lease items from non-approved suppliers.
If a franchisee fails to purchase required items or equipment for new products or services within a reasonable time (no more than 90 days after notification), Card My Yard has the option to purchase these items on the franchisee's behalf and deduct the costs from their account. This highlights the importance of adhering to Card My Yard's sourcing requirements and maintaining open communication regarding any desired deviations from the approved supplier list.