When is the initial franchise fee considered fully earned by Card My Yard?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
;
- (8) You must pay us a renewal fee in the amount of $3,000; and
- (9) You must comply with our then-current qualification and training requirements.
V. FEES
- A. Initial Franchise Fee. You agree to pay us an initial franchise fee of Eight Th
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the initial franchise fee of $8,500 is deemed fully earned and nonrefundable upon receipt by Card My Yard. This means that once Card My Yard receives the initial franchise fee, it is considered earned and is nonrefundable to the franchisee, regardless of whether the franchisee's business ever opens or becomes successful.
This is a standard practice in franchising, as the initial fee is intended to compensate the franchisor for the costs and efforts involved in evaluating the franchisee, providing initial training and support, and granting the franchisee the right to operate under the Card My Yard brand. Prospective franchisees should be aware of this policy and carefully consider their decision before paying the initial franchise fee.
It is important for potential Card My Yard franchisees to understand that the initial franchise fee is nonrefundable in most cases, so they should conduct thorough due diligence and carefully evaluate the risks and potential rewards of investing in a Card My Yard franchise before signing the franchise agreement and paying the fee. Franchisees should also inquire about any circumstances under which a portion of the fee might be refundable, such as failure to complete the initial training program.