What must a Card My Yard franchisee do if an advertising cooperative is established for their area?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
ng 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. 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.
- C. MarketingFund. We may, at our option, establish a marketing program fund (the "MarketingFund" or "Fund").
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if an advertising cooperative is established for a geographic area that includes a franchisee's protected area, the franchisee is required to contribute to the cooperative. The monthly contribution amount will be detailed in the cooperative's governing documents.
Specifically, the franchisee must promptly execute the applicable cooperative documents upon Card My Yard's request and participate as a member of the cooperative. This participation includes submitting all statements and reports required by Card My Yard or the cooperative. Franchisees are obligated to contribute the amounts mandated by the cooperative's governing documents.
It's important to note that these cooperative contributions will not count towards fulfilling the franchisee's local advertising requirements as outlined in Section IX.A of the Franchise Agreement. Card My Yard retains the right to designate any geographic area with two or more company-owned or franchised businesses as a region for establishing a cooperative.