When does the initial 36-month operating lease for office spaces expire for Card My Yard?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company determines whether an arrangement is a lease at inception of the lease agreement. The Company entered into a non-cancellable 36-month operating lease for office spaces on April 1, 2021. The lease expires March 31, 2024. The Company considered the terms of the lease agreement to establish their right-of-use asset and lease liability. The lease does not have any material residual value guarantees or material restrictive covenants. The lease does not provide an implicit rate; therefore, the Company uses a risk-free discount rate, using a period comparable with that of the lease term. The Company used the riskfree discount rate on the later of the lease commencement date or the transition to ASC 842, to determine the present value of the lease payments.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the company entered into a non-cancellable 36-month operating lease for office spaces on April 1, 2021. The lease is scheduled to expire on March 31, 2024.
This information pertains to Card My Yard's corporate lease obligations and does not directly impact franchisees. However, it provides insight into the company's financial commitments and operational structure. Franchisees are typically responsible for securing their own locations, whether from their primary residence or a separate site, and managing their own lease agreements if applicable.
Prospective franchisees should focus on understanding their own potential lease obligations and site selection criteria as outlined in the FDD. While the expiration date of Card My Yard's corporate lease does not directly affect franchisees, it is advisable to inquire about any potential changes to corporate operations or support that may arise from the relocation or renewal of their office spaces.