Can the distribution date schedule for Net Proceeds change for Card My Yard franchisees?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
Net Proceeds distributions will be made to you every Friday (subject to delay for bank holidays), provided that distribution date schedules may change from time to time, at our option, upon written notice to you.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the distribution date schedule for Net Proceeds can change. Net Proceeds distributions are typically made to franchisees every Friday, but this is subject to delays for bank holidays. Card My Yard retains the option to change the distribution date schedule from time to time, provided they give the franchisee written notice.
Net Proceeds are defined as the total amount paid by customers on a weekly basis, less royalty fees, Marketing Fund contributions (if applicable), other fees owed to Card My Yard, sales taxes, and any other amounts the franchisee may owe to Card My Yard or its affiliates. This means that the franchisee receives the revenue after these deductions are made by Card My Yard.
This clause gives Card My Yard flexibility in managing its payment processes, but it also introduces a degree of uncertainty for the franchisee. While the standard distribution is every Friday, franchisees need to be aware that this schedule could change with written notice. It is important for prospective franchisees to factor this potential variability into their financial planning and cash flow projections.