What must a Card My Yard franchisee execute promptly upon request regarding cooperatives?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Among other things, this means that (i) you must submit to the Cooperative and to us all statements and reports that we or the Cooperative may require, and (ii) you must contribute to the Cooperative the amounts required by the Cooperative's governing documents.
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, if a Cooperative is established for a geographic area that includes all or part of the franchisee's Protected Area, the franchisee is required to contribute to the Cooperative a monthly amount detailed in the Cooperative's governing documents.
More specifically, the franchisee must execute the applicable Cooperative documents promptly upon Card My Yard's request and participate as a member of the Cooperative. This obligation includes submitting all statements and reports that Card My Yard or the Cooperative may require and contributing the amounts mandated by the Cooperative's governing documents.
It is important to note that the franchisee's contributions to the Cooperative will not count towards fulfilling any local advertising requirements outlined elsewhere in the Franchise Agreement. This means that participation in the Cooperative is an additional expense and obligation beyond the standard local advertising commitments.