For Card My Yard franchises in Illinois, when is the initial franchise fee paid?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
a form acceptable to us, which will, among other things, include your payment to us of a termination fee equal to $1,000 plus any out-of-pocket expenses incurred by us. If you fail to successfully complete our initial training program to our satisfaction within 60 days after executing this Agreement, we may, at our option, terminate this Agreement upon written notice to you and retain 50% of your initial franchise fee. The other 50% of your initial franchise fee will be returned to you.
- G. Conference Fees. We may, at our option, host franchisee conferences (aka "Conferences") from time to time, and you (i.e. each of your owners) must attend each Conference and pay the applicable Conference registration fee in the amount of $250 per person.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
Based on the 2025 Card My Yard Franchise Disclosure Document, the timing of the initial franchise fee payment is tied to specific events related to training and potential termination of the franchise agreement. If a franchisee fails to complete the initial training program to Card My Yard's satisfaction within 60 days of signing the agreement, Card My Yard has the option to terminate the agreement. In such a case, they will retain 50% of the initial franchise fee, while the other 50% will be returned to the franchisee.
Additionally, if a franchisee encounters unforeseen health or personal issues that prevent them from starting the Card My Yard business before operations begin, Card My Yard may allow the franchisee to terminate the agreement. This termination requires a mutual written agreement and the payment of a termination fee of $1,000, along with reimbursement for any out-of-pocket expenses incurred by Card My Yard.
These clauses outline specific scenarios where the initial franchise fee, or a portion thereof, may be affected by the franchisee's actions or unforeseen circumstances. It is important for prospective franchisees to understand these conditions and their implications regarding the initial investment.