What is the high-end lease expense estimate for a Card My Yard franchise based on?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF | AMOUNT | AMOUNT | METHOD | WHEN DUE | TO WHOM |
|---|---|---|---|---|---|
| EXPENDITURE | (LOW) | (HIGH) | OF PAYMENT | PAYMENT IS TO BE MADE | |
| Initial Franchise Fee1 | $8,500 | $8,500 | Lump sum | When you sign Franchise Agreement | Us |
| Lease Expenses (three | $0 | $500 | As stated in | As incurred | Landlord |
| months)2 | lease |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 23–27)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the high-end lease expense estimate of $500 is based on leasing a small warehouse space with at least 18 feet of wall space with walls at least 8 feet high. This estimate assumes that the franchisee will not need to make any leasehold improvements. The lease expenses are to be paid to the landlord as incurred, according to the terms stated in the lease agreement.
Card My Yard anticipates that franchisees will operate the business from a home office, but the high-end estimate provides an alternative for those who prefer a separate storage space. The FDD indicates that these costs are the best estimate based on costs that Card My Yard's affiliates have experienced with the company-owned Card My Yard business in Springville, Utah.
However, the document also notes that these estimates may vary substantially based on the franchisee's ability to negotiate with the landlord, their financial strength, local commercial leasing and labor rates, and other local conditions. This means that a prospective Card My Yard franchisee should carefully research local leasing costs and consider these factors when budgeting for their initial investment.