What discount rate does Card My Yard use to discount lease liabilities?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) If you wish to operate your Card My Yard Business from a location that is not your primary residence, then before acquiring a site for the Card My Yard business, you must submit to us, in the form specified by us, a description of the site, evidence satisfactory to us demonstrating that the site satisfies our site selection guidelines, and such other information and materials as we may reasonably require,including, but notlimited to, a final, complete copy of the lease (which must incorporate a rider in substantially the form attached hereto as Exhibit F) or contract of sale for the site for your Card My Yard business.
Such lease or contract for sale may not be signed by you unless it includes a rider in substantially the form attached hereto as Exhibit F and is submitted to, and approved by, us in advance.
- (3) We shall have fifteen (15) days after receiving all required site information to accept or reject, in our sole discretion, the proposed site as the location for your Card My Yard business.
No site may be used for a Card My Yard business unless it is first accepted in writing by us, and you shall not make any binding commitment with respect to a site for your Card My Yard business unless the site is first accepted in writing by us.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, there is no mention of a specific discount rate used by Card My Yard to discount lease liabilities. The document does discuss leases in the context of site selection, indicating that if a franchisee chooses to operate their Card My Yard business from a location other than their primary residence, they must submit the lease for approval. The lease must include a rider in a specific form. Card My Yard must approve the site before the franchisee makes any binding commitments.
However, the FDD does not provide information on how Card My Yard accounts for lease liabilities or what discount rate they might use for such calculations. This type of information is typically found in the financial statements or related notes, which are not included in the provided excerpts.
A prospective Card My Yard franchisee should ask the franchisor directly about the discount rate used for lease liabilities and request to see the relevant sections of the financial statements or accounting policies that address this topic. Understanding this rate is crucial for assessing the true cost of leasing a location for the Card My Yard business and for accurate financial planning.