Where can I find the specific amounts for each fee associated with a Card My Yard franchise?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 6: OTHER FEES]
| Liquidated Damages (Termination) | An amount equal to the greater of: (a) $6,600 or (b) the total royalties paid by you during the previous 12 months multiplied by two. If your Card My Yard business has not been open for at least 12 months, then your liquidated damages amount will be $6,600. | Upon your unauthorized closure of your Card My Yard business or any termination of the Franchise Agreement in connection with a breach by you. | This fee compensates us for your unauthorized closure of the Card My Yard business or any termination of the Franchise Agreement in connection with a breach by you. |
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| 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.
| 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 |
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| 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. |
| 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. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Item 6 details the various fees a franchisee may incur. These fees cover a range of circumstances, from liquidated damages for unauthorized closure or breach of contract, which could be $6,600 or double the previous 12 months of royalties, to $5,000 per occurrence for intentional non-reporting or underreporting of revenues. Franchisees are also responsible for audit fees if an audit reveals an understatement of amounts owed by 2% or more, as well as reimbursement for insurance coverage if Card My Yard secures it on their behalf.
Beyond these, Card My Yard franchisees will encounter ongoing expenses such as local marketing, where they must complete at least 24 promotional yard greeting services (worth approximately $2,400) annually and spend a minimum on local advertising that escalates over time: $300 in the first year, $500 in the second, and $800 annually thereafter. There's also the potential for contributions to advertising cooperatives, should Card My Yard establish them. A marketing fund contribution, if implemented, could range from 0.5% of monthly gross sales or a flat fee that starts at $25 per month and increases to $65.
Other fees include interest and late fees on overdue amounts, training fees at $150 per day per trainer for additional training at Card My Yard's offices, and a per diem fee of $200 per trainer for on-site remedial training. It is important to note that Card My Yard retains the right to modify these fees based on market conditions, service costs, and policy changes, although they currently have no plans to do so. Franchisees should be aware of these potential costs and how they might impact their overall investment and profitability.