Can Card My Yard franchisees suggest public figures for national promotional campaigns?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing Fund and Regional Advertising
Marketing Fund Contributions
In addition to local advertising (individually or through a Cooperative), we reserve the right to establish a franchisee marketing fund (the "Fund" or "Marketing Fund"). If a Marketing Fund is established, you must make periodic contributionsto the Fund of up to 2% of the Card My Yard business' Gross Sales, provided that your initial periodic contributions will each be 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. In our sole discretion on not less than 30 days' written notice, we may increase the amount you must contribute to the Fund; provided, however, that you will not be required to contribute more than 2% of the Card My Yard business's Gross Sales to the Fund, subject to the $20 per month minimum contribution requirement. Your required contributions to the Fund are in addition to amounts you are required 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 18 — PUBLIC FIGURES (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Card My Yard FDD, the franchisor maintains control over the creative concepts, materials, endorsements, and media placement for programs financed by the Marketing Fund. While the FDD does not explicitly state that franchisees can suggest public figures for national promotional campaigns, it does say that the franchisor directs all programs financed by the fund.
Card My Yard franchisees are required to participate in advertising and sales promotion programs that the franchisor authorizes or develops, including national marketing initiatives. Franchisees are also obligated to spend on local advertising, with specific amounts required annually, such as $300 in the first 12 months, $500 in months 13 through 24, and $800 in each 12-month period thereafter.
Given the franchisor's control over the Marketing Fund and national campaigns, it is advisable for a prospective franchisee to inquire about the process for suggesting ideas or providing input into national advertising strategies. It would be beneficial to understand if there are established channels for franchisee feedback and how the franchisor incorporates franchisee perspectives into national promotional efforts.