Can Card My Yard negotiate purchase arrangements with suppliers for the benefit of franchisees?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, at our option, negotiate certain purchase arrangements (including price terms) for the purchase of certain items, such as equipment, retail products, uniforms, logoed paper products, supplies or other items, with suppliers for the benefit of franchisees. In doing so, we seek to promote the overall interests of our franchise system and our interests as the franchisor. We or our affiliates may receive rebates or other material consideration from approved or designated sources. We do not currently receive rebates or other material consideration from approved or designated sources, but we reserve the right to do so. We will not provide material benefits to franchisees based upon their use of designated or approved suppliers. There are currently no purchasing or distribution cooperatives for the Card My Yard franchise system.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–32)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Card My Yard has the option to negotiate purchase arrangements with suppliers for the benefit of its franchisees. These arrangements may include negotiating price terms for items such as equipment, retail products, uniforms, logoed paper products, and other supplies. Card My Yard states that it does this to promote the overall interests of the franchise system and its own interests as the franchisor.
Card My Yard may receive rebates or other material consideration from approved or designated sources, although the document states that they do not currently receive such benefits but reserve the right to do so in the future. However, Card My Yard states that it will not provide material benefits to franchisees based upon their use of designated or approved suppliers. Currently, there are no purchasing or distribution cooperatives for the Card My Yard franchise system.
Prospective franchisees should be aware that Card My Yard requires franchisees to purchase certain items from them or their designees. The initial required purchases are estimated to be between 60% and 80% of the total initial purchases or leases necessary to establish the Card My Yard business. For ongoing operations, required purchases are estimated to range between 20% and 30% of total annual purchases or leases. Card My Yard is the only approved supplier for yard letters and signs, as well as "Card My Yard" branded items, and franchisees must use Card My Yard's payment processing services.