What is the minimum contribution to the Card My Yard Marketing Fund based on?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
portion of your local advertising requirement under Section IX.A.
- C. MarketingFund. We may, at our option, establish a marketing program fund (the "MarketingFund" or "Fund"). If a Marketing Fund is established, you must make weekly contributions to the Fund in an amount equal to the greater of: (a) one-half of one percent (0.5%) of your Card My Yard business' Gross Sales or (b) $25 per month in the first 12 months of this Agreement; $40 per month in months 13 through 24 of this Agreement; and $65 per month in each 12-month period thereafter. In our sole discretion, we may increase the amount you must contribute to the Fund upon not less than thirty (30) days' written notice to you; provided, however, that you shall not be required to contribute more than two percent (2%) of the Card My Yard business' Gross Sales to the Fund, subject to the monthly minimums. Your required contributions to the Fund are in addition to amounts you are required to
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees must make weekly contributions to the Marketing Fund. The minimum contribution is determined by whichever is greater between two options. The first option is one-half of one percent (0.5%) of the Card My Yard business's Gross Sales. The second option is a fixed monthly amount that escalates over time: $25 per month for the first 12 months of the franchise agreement, $40 per month for months 13 through 24, and $65 per month for each 12-month period thereafter.
Card My Yard retains the right to increase the contribution amount with at least thirty days' written notice. However, the contribution cannot exceed two percent (2%) of the Card My Yard business's Gross Sales, although the monthly minimums still apply. These contributions are in addition to any local advertising expenses that franchisees are required to spend under Section IX.A of the agreement.
Franchisees should note that the franchisor has sole discretion over how the Marketing Fund is used. While Card My Yard aims to maximize brand recognition and customer patronage, there's no guarantee that the marketing efforts will directly benefit each franchisee's specific geographic area or be proportional to their contributions. This is a common practice in franchising, where marketing funds are often used for broader campaigns that may not have an immediate impact on every individual franchise location.