What happens to a Card My Yard franchisee's account receivable when it is determined to be uncollectible?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless we direct otherwise in writing, you must require all of your customers to pay for all services and products through our payment processing system accessible only on our Card My Yard website ("Payment Processing System"). We have established the Payment Processing System to help Card My Yard franchisees operate their businesses more efficiently by minimizing the bookkeeping and accounting burden, as well
as to simplify the overall administrative functions. Under the Payment Processing System, we are responsible for processing all payments received from your customers. You will direct each of your customers to pay us online through the Payment Processing System for all services and products you sell to them. We will process payments received from your customers, but, ultimately you are solely responsible for taking the steps necessary to ensure that your customers pay in full before you provide the applicable services or products to them. In the event that a customer fails to pay in full and in advance through the Payment Processing System, you shall not provide any services or products to such customer.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees are responsible for ensuring customers pay in full before services are rendered. Card My Yard requires all customers to pay for services and products through their Payment Processing System, accessible on the Card My Yard website.
Card My Yard processes all payments received from customers through this system. However, the franchisee is ultimately responsible for ensuring that customers pay in full before providing any services or products.
Specifically, the FDD states that if a customer does not pay in full and in advance through the Payment Processing System, the franchisee shall not provide any services or products to that customer. This policy effectively eliminates the risk of uncollectible accounts receivable for the franchisee, as services should only be provided after payment is secured.