How are the due dates for the various fees associated with a Card My Yard franchise determined?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| Liquidated Damages (Non Reporting or Underreporting) | An amount equal to $5,000 per occurrence will be owed for each instance when we document your intentional non-reporting or under-reporting of revenues that you realize and receive from your Card My Yard business. | On demand | This fee compensates us for the time, expense, legal fees, and related costs associated with non-reporting, under reporting and intentional withholding of royalty and related obligations associated with revenue in the event that you intentionally omit revenues from your reporting. | | Audit Fee | Cost of audit | When billed | Payable if an examination or audit shows you have understated any amount owed to us by 2% or more. | | Insurance Reimbursement | An amount equal to our actual expenses for the required coverages | On demand | If you fail to maintain the required insurance, we may (but need not) obtain it for you. If we do, we will charge you a fee equal to our actual expenses for obtaining and maintaining the required coverages. | | Enforcement Costs | Will vary | As incurred | You must pay our costs of enforcement (including attorney's fees and costs) if you do not comply with the Franchise Agreement. | Local Marketing and Cooperatives
You must complete at least 24 promotional yard greeting services (worth a total of approximately $2,400) during each 12 -month period under your agreement, and you must also spend at least the following amounts on local advertising: (a) $300 in the first 12 months of your agreement, (ii) $500 in months 13 through 24 of your agreement, and (iii) $800 in each 12 month period thereafter. No advertising cooperatives have been established as of the date of this disclosure document, but if established by us for your market, you will be required to contribute to such Cooperative.
On demand These fees are typically paid directly to the local marketing service providers, but if you fail to spend the required minimum amount on local marketing (or fail to complete the minimum number of promotional yard greetings services) then we may require you to pay the corresponding amounts to us so that we may purchase local marketing services for your Protected Area. Expenses considered to be local marketing include, but are not limited to, promotional yard set -ups, local coupons, Internet/social media ads, sponsorships, and/or PTA/PTO events. We may increase the minimum local advertising requirements upon 30 days' written notice to you. In addition to local spending requirements, you must post at least 5 promotional messages on both Facebook and Instagram each week. | Interest and Late Fees | Interest of 18% per annum or the maximum rate allowed by applicable law, or, at our option, $100 for each failure to timely pay an amount owed under the Franchise Agreement | On demand | We may charge interest or a late fee for any delinquent amounts due under the Franchise Agreement. | | Additional Training at our offices | At our option, a per diem rate of $150 a day for each trainer. | Before additional training | See Item 11. In addition to our fees, you must also pay all of the costs and expenses of your personnel attending training | | On-site Remedial Training | The then-current per diem fee for remedial training, plus all of our costs and expenses related to providing such training. Our current per diem rate is $200 per trainer. | When billed. | If you ask or if we believe it is appropriate, we will (subject to our trainers' availability) provide trained representatives to conduct on-site remedial training at your Card My Yard business. | | Marketing | Currently $0. If | If implemented, we will | businesses that are located in your Cooperative territory, such company owned Card My Yard businesses will NOT have voting power to increase your required Cooperative contributions. All or a portion of your contributions to a Cooperative may be used to establish and/or maintain a website(s) focused on promoting the Card My Yard Concept in and around your market area. See Note 2 for the definition of Gross | | Fund | implemented, an amount equal to the greater of: (a) one-half of one percent (0.5%) of the Card My Yard business' monthly Gross Sales or (b) $25 per month in the first 12 months of your agreement; $40 per month in months 13 through 24; and $65 per month in each 12- month period thereafter. | withhold these funds in the same manner as the royalty payments described above in this Item 6. | Sales. The Marketing Fund contribution is in addition to the local advertising requirement. We may increase the required contribution amount on not less than 30 days' written notice to you (up to a maximum of 2% of Gross Sales, subject to the monthly minimum payments). We may, in our sole discretion, change the frequency of the Marketing Fund Contributions (e.g. change to monthly payments) upon written notice to you. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the due dates for other fees vary. Some fees, such as liquidated damages for non-reporting or underreporting ($5,000 per occurrence) and insurance reimbursement (equal to actual expenses), are due 'on demand.' This means Card My Yard can request immediate payment.
Other fees have different payment schedules. Audit fees (cost of audit) are due 'when billed,' which occurs if an audit reveals an understatement of amounts owed by 2% or more. Enforcement costs (attorney's fees and costs) are due 'as incurred,' meaning as Card My Yard spends money enforcing the Franchise Agreement. Additional training fees ($150 per trainer per day) are due 'before additional training' is provided. On-site remedial training fees (per diem fee plus costs and expenses) are due 'when billed' after the training is conducted.
Local marketing expenses are typically paid directly to service providers, but if a franchisee fails to meet the minimum spending requirements ($300 to $800 annually, increasing over time) or complete the minimum number of promotional yard greeting services, Card My Yard may require payment for them to purchase the services. Interest and late fees on any delinquent amounts, or a flat $100 fee, are due 'on demand'. Finally, marketing fund contributions (0.5% of gross sales or a minimum of $25 to $65 per month, increasing over time) will be withheld in the same manner as royalty payments.