What was the net loss for Card My Yard in 2023?
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 company experienced a net loss of $2,257,383 in 2023. This figure represents the overall financial performance of Card My Yard for that year, taking into account all revenues, expenses, and other income/losses.
For a prospective franchisee, this net loss figure is an important indicator of the financial health and stability of Card My Yard. While a single year's loss doesn't necessarily indicate long-term problems, it warrants further investigation. A potential franchisee should look at the trend of net income/loss over several years to understand if the company is consistently profitable or if losses are a recurring issue. Examining the reasons behind the loss, such as increased operating expenses or decreased revenues, is also crucial.
It's also important to compare Card My Yard's financial performance with that of other similar franchises in the same industry. This benchmarking can provide a more comprehensive understanding of whether the company's financial results are typical or if there are specific areas of concern. Prospective franchisees should discuss these financial results with Card My Yard and seek clarification on the factors contributing to the net loss and the company's plans to improve profitability.
Ultimately, understanding the financial performance of the franchisor is a critical step in evaluating the overall viability and potential success of a Card My Yard franchise. Consulting with a financial advisor is recommended to fully assess the implications of the net loss and other financial data presented in the FDD.