If a Card My Yard advertising cooperative is established, what is the franchisee required to contribute?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
ng programs and developing promotional materials for local advertising and will be operated solely as a conduit for the collection and expenditure of advertising contributions. If a Cooperative is established for a geographic area that includes all or part of the Protected Area, you will be required to contribute to the Cooperative a monthly amount set forth in the Cooperative's governing documents, and you must execute the applicable Cooperative documents promptly upon our request and participate as a member of the Cooperative. Among other things, this means that (i) you must submit to the Cooperative and to us all statements and reports that we or the Cooperative may require, and (ii) you must contribute to the Cooperative the amounts required by the Cooperative's governing documents. Your Cooperative contributions will not be applied to satisfy any portion of your local advertising requirement under Section IX.A.
- C. MarketingFund. We may, at our option, establish a marketing program fund (the "MarketingFund" or "Fund"). If a Marketing Fund is established, you must make weekly contributions to the Fund in an amount equal to the greater of: (a) one-half of one percent (0.5%) of your Card My Yard business' Gross Sales or (b) $25 per month in the first 12 months of this Agreement; $40 per month in months 13 through 24 of this Agreement; and $65 per month in each 12-month period thereafter. In our sole discretion, we may increase the amount you must contribute to the Fund upon not less than thirty (30) days' written notice to you;
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if an advertising cooperative is established in a franchisee's area, the franchisee is required to contribute to it. The franchisee's contribution will be a monthly amount as specified in the cooperative's governing documents. Franchisees must also promptly execute the cooperative's documents upon request and participate as a member.
In addition to monetary contributions, franchisees must submit all required statements and reports to both the cooperative and Card My Yard. It is important to note that these cooperative contributions will not count towards fulfilling the franchisee's local advertising requirements as outlined in Section IX.A of the Franchise Agreement.
Card My Yard reserves the right to designate any geographic area with two or more company-owned or franchised locations as a region for establishing a cooperative. The franchisor also has the authority to terminate any cooperative at its discretion with written notice. These cooperatives are designed to manage local advertising programs and promotional materials, operating solely as a channel for collecting and spending advertising funds.