How does the Card My Yard FDD define a 'Cooperative'?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
"Cooperative" means an advertising cooperative, as described in Section IX.B. of this Agreement.
We have the right to designate any geographic area in which two (2) or more company-owned or franchised Card My Yard businesses are located as a region for purposes of establishing an advertising cooperative ("Cooperative").
If we do, each Cooperative will be organized and governed as, and will begin operation on a date, we determine.
Any Cooperative may be terminated by us, in our sole discretion, upon written notice to you.
Cooperatives will be organized for the exclusive purpose of administering advertising programs and developing promotional materials for local advertising and will be operated solely as a conduit for the collection and expenditure of advertising contributions.
If a Cooperative is established for a geographic area that includes all or part of the Protected Area, you will be required to contribute to the Cooperative a monthly amount set forth in the Cooperative's governing documents, and you must execute the applicable Cooperative documents promptly upon our request and participate as a member of the Cooperative.
Your Cooperative contributions will not be applied to satisfy any portion of your local advertising requirement under Section IX.A.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a "Cooperative" refers to an advertising cooperative, as detailed in Section IX.B of the franchise agreement. Card My Yard has the right to designate any geographic area with two or more company-owned or franchised locations as a region for establishing such a cooperative.
If Card My Yard establishes a Cooperative, it will determine how it is organized, governed, and when it begins operation. Card My Yard also retains the right to terminate any Cooperative at its discretion with written notice. These cooperatives are specifically for administering advertising programs and developing promotional materials for local advertising, functioning solely as a channel for collecting and spending advertising contributions.
If a Cooperative is established that includes a franchisee's protected area, the franchisee is required to contribute a monthly amount as specified in the Cooperative's governing documents. The franchisee must also promptly execute the necessary Cooperative documents and actively participate as a member. These contributions to the Cooperative cannot be used to fulfill the franchisee's local advertising requirements outlined in Section IX.A of the agreement. This means that franchisees must budget separately for both Cooperative contributions and their individual local advertising efforts, ensuring comprehensive marketing coverage.