When are the lease expenses for a Card My Yard franchise due?
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, lease expenses are due 'as incurred,' according to the terms stated in the lease agreement with the landlord. The FDD estimates these lease expenses for three months to range from $0 to $500. The low estimate assumes the franchisee will operate from a home office, while the high estimate accounts for leasing a small warehouse space.
It's important to note that the actual lease expenses may vary significantly based on factors such as the franchisee's negotiation skills, financial strength, and local commercial leasing rates. The FDD advises that these estimates are based on the experiences of Card My Yard's affiliate-owned business in Springville, Utah, and that costs can fluctuate depending on local conditions.
Prospective franchisees should carefully consider their location and business needs when estimating lease expenses. If a franchisee chooses to lease a space, they may also be required to pay security deposits to third parties, such as utility companies. These deposits are separate from the lease expenses and will vary based on the location and services selected.