Are Card My Yard franchisee's Cooperative contributions credited against their individual local advertising requirements?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Cooperative is established for an area that includes your Protected Area, you must become a member of the Cooperative and participate in the Cooperative by contributing the amounts required by the Cooperative's governing documents. Your Cooperative contributions will be in addition to your required individual local marketing spend requirements. No portion of your Cooperative contributions will be credited against your individual local advertising requirements.
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, franchisee contributions to advertising cooperatives do not count towards their individual local advertising obligations. The FDD specifies that if a cooperative is established in a franchisee's protected area, the franchisee must join and contribute as required by the cooperative's rules.
This contribution is separate from, and in addition to, the franchisee's individual local marketing spend requirements. The document is explicit that no portion of cooperative contributions will be credited against these individual local advertising requirements.
This means Card My Yard franchisees must budget for both cooperative advertising fees and their own local advertising expenses. This could potentially increase the overall advertising costs for franchisees in areas where cooperatives are established. Franchisees should inquire about the existence and contribution requirements of any cooperative in their area to fully understand their financial obligations.