What happens to unspent monies if the Card My Yard advertising fund is terminated?

According to Card My Yard's 2025 Franchise Disclosure Document, if the advertising fund is terminated, any unspent money will be distributed to the contributors. The distribution will be proportional to each contributor's payments into the fund over the 12-month period preceding the termination date. This means that franchisees who have contributed more to the fund recently will receive a larger share of the remaining money.

This policy ensures that franchisees receive back a portion of their advertising fees if the fund is discontinued. It also incentivizes consistent contributions to the fund, as those contributions directly impact the amount returned if the fund is terminated. This is a fairly standard practice in franchising, as advertising funds are typically managed for the benefit of the franchisees, and any remaining funds should be returned to them equitably.

It's important for prospective Card My Yard franchisees to understand that while the franchisor can terminate the fund, there is a mechanism in place to return unspent monies. Franchisees should also be aware of how the fund is managed, how contributions are used, and the conditions under which the fund can be terminated. Reviewing the annual statement of monies collected and costs incurred by the fund can provide valuable insight into its financial management.