Is the Card My Yard Marketing Fund a trust or escrow account?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
We orsomeone we designate willseparately administer the Fund. The Fund is not a trust or escrow account, and we do not have any fiduciary obligations with respect to the Fund. We will direct all programs financed by the Fund, including the creative concepts, materials, endorsements, and the geographic market and media placement and allocation thereof. We may use the Fund to satisfy the costs of producing video, audio and written advertising materials; administering regional and multi-regional advertising programs; developing and maintaining an Internet website; developing and maintaining gift card, membership and other customer loyalty programs; and supporting public relations, market research and other advertising, promotion and marketing activities. We are not required to make expenditures for you that are equivalent or proportionate to your Fund contributions or to ensure that any particular franchisee benefits directly or in proportion to its contributions to the Fund. Except for any portion of the Fund spent on website development and maintenance (a portion of which may include soliciting the sale of franchises using our website or websites primarily focused on franchise growth), the Fund is not used to solicit the
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 34–43)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the Marketing Fund is not established as a trust or escrow account. Card My Yard explicitly states that they do not have any fiduciary obligations with respect to the Fund. This means that Card My Yard has considerable discretion in how the marketing funds are managed and spent.
Card My Yard, or someone they designate, will administer the Fund separately and direct all programs financed by it. This includes creative concepts, materials, endorsements, and the geographic market and media placement. The funds can be used for various advertising and marketing activities, such as producing materials, administering programs, maintaining websites, and supporting public relations.
While franchisees are required to contribute to the Marketing Fund if it is established, Card My Yard is not obligated to ensure that expenditures are equivalent or proportionate to individual contributions, nor are they required to guarantee that any franchisee benefits directly in proportion to their contributions. However, if the fund is terminated, all unspent monies will be distributed to the contributors in proportion to their respective contributions during the preceding 12-month period.