What is the meaning of 'Affiliates' in the context of Card My Yard's approved suppliers?

According to Card My Yard's 2025 Franchise Disclosure Document, an 'Affiliate' of a person or entity is defined as any person or entity that controls, is controlled by, or is under common control with the named person.

This definition is relevant to the sourcing of supplies for a Card My Yard franchise. The FDD states that franchisees must purchase inventory, supplies, and equipment from approved suppliers, which may include Card My Yard, its Affiliates, or third-party sources. Card My Yard can designate itself, its Affiliates, or a third party as an approved supplier or the sole approved supplier for any item.

This arrangement allows Card My Yard and its Affiliates to potentially derive revenue from franchisee purchases and leases. This includes direct charges for products/services provided to the franchisee and payments from designated/approved suppliers to Card My Yard or its Affiliates. Franchisees are obligated to purchase yard letters/signs (or related materials and equipment) totaling at least $500 each year directly from Card My Yard. This arrangement means that Card My Yard has the right to profit from required purchases made by its franchisees, and can exert control over the supply chain by mandating specific vendors.