What was the net loss for Card My Yard in 2021?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 2022 | 2021 | |
|---|---|---|
| Revenues: | ||
| Royalties | $ 2,349,533 $ 2,658,960 $ 3,957,477 | |
| Franchise fees | 400,660 431,653 | 593,100 |
| Boutique sales | 764,972 1,243,391 | 2,667,220 |
| CARDference fees | 6,400 38,950 | - |
| Total revenues | 3,521,565 4,372,954 | 7,217,797 |
| Cost of sales | 710,518 1,029,769 | 2,147,137 |
| Gross profit | 2,811,047 3,343,185 | 5,070,660 |
| Operating expenses: | ||
| Advertising and promotion | 126,163 137,038 | 241,493 |
| Amortization | 1,459,986 1,459,983 | 1,459,980 |
| Conferences | 15,103 230,890 | 42,611 |
| Credit card fees | 343,045 410,140 | 606,030 |
| Depreciation | 14,949 14,948 | 11,333 |
| Insurance | 54,760 63,906 | 50,969 |
| Legal and professional | 303,127 295,456 | 328,966 |
| Management and board fees | 459,742 450,000 | 370,834 |
| Payroll expenses and benefits | 1,717,718 1,449,774 | 2,032,952 |
| Rent | 165,150 151,775 | 125,254 |
| Software | 241,922 255,850 | 225,151 |
| Other | 128,731 100,092 | 176,013 |
| Total operating expenses | 5,030,396 5,019,852 | 5,671,586 |
| Loss from operations | (2,219,349) (1,676,667) | (600,926) |
| Other income (expense): | ||
| Interest expense | (23,948) - | - |
| Charitable contributions | (15,000) (20,750) | (37,233) |
| Other income | 914 261 | 15,915 |
| Other expense, net | (38,034) (20,489) | (21,318) |
| Net loss | (2,257,383) (1,697,156) | (622,244) |
| Member's equity, beginning of year | 10,783,542 12,480,698 | 14,931,385 |
| Member distributions | - - | (1,828,443) |
| Member's equity, end of year | $ 8,526,159 $ 10,783,542 $ 12,480,698 |
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the net loss for 2021 was ($622,244). This figure represents the difference between the company's total revenues and total expenses for that year, indicating that Card My Yard's expenses exceeded its revenues by this amount. This information is crucial for potential franchisees as it provides insight into the financial performance of the company during that period.
Specifically, the document outlines various revenue streams, including royalties, franchise fees, and boutique sales, which totaled $7,217,797 in 2021. However, the cost of sales and operating expenses, such as advertising, amortization, and payroll, amounted to a significantly higher $7,818,723. The difference between these figures resulted in the net loss.
Prospective franchisees should carefully consider these historical financial results to understand the potential risks and rewards associated with investing in a Card My Yard franchise. While a net loss does not necessarily indicate long-term financial instability, it warrants further investigation into the factors contributing to the loss and the company's strategies for improving profitability. It is important to note that past performance is not indicative of future results, and franchisees should conduct their own due diligence and consult with financial advisors before making any investment decisions.