Does Card My Yard have fiduciary obligations with respect to the Marketing Fund?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
to spend for local advertising.
Administration of the Marketing Fund
We orsomeone we designate willseparately administer the Fund. The Fund is not a trust or escrow account, and we do not have any fiduciary obligations with respect to the Fund. We will direct all programs financed by the Fund, including the creative concepts, materials, endorsements, and the geographic market and media placement and allocation thereof. We may use the Fund to satisfy the costs of producing video, audio and written advertising materials; administering regional and multi-regional advertising programs; developing and maintaining an Internet website; developing and maintaining gift card, membership and other customer loyalty programs; and supporting public relations, market research and other advertising, promotion and marketing activities. We are not required to make expenditures for you that are equivalent or proportionate to your Fund contributions or to ensure that any particular franchisee benefits directly or in proportion to its contributions to the Fund. Except for any portion of the Fund spent on website development and maintenance (a portion of which may include soliciting the sale of franchises using our website or websites primarily focused on franchise growth), the Fund is not used to solicit the
sale of franchises.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 34–43)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Card My Yard does not have fiduciary obligations with respect to the Marketing Fund. The FDD specifies that the Marketing Fund is not a trust or escrow account. Card My Yard or someone they designate will administer the fund separately.
Card My Yard will direct all programs financed by the Marketing Fund, including creative concepts, materials, endorsements, geographic market, and media placement. The fund may cover video, audio, and written advertising materials, regional advertising programs, website development, customer loyalty programs, public relations, market research, and other marketing activities.
Card My Yard is not required to make expenditures equivalent or proportionate to a franchisee's contributions or ensure any franchisee benefits directly in proportion to their contributions. The brand will prepare an annual statement of the Fund's operations and make it available upon request. Any unspent monies will be applied toward advertising activities or expenses in the following fiscal year. The FDD also states that the fund has not yet been established, so no amounts were contributed to or spent by the fund in the last fiscal year.