What payment authorization is a Card My Yard franchisee required to provide?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
For all payments owed to us, you are required to provide at the time of signing this Franchise Agreement and to maintain a current ACH payment authorization, in the form available from us or in the Operations Manual.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees are required to provide and maintain a current ACH (Automated Clearing House) payment authorization. This authorization must be in a form available from Card My Yard or as specified in the Operations Manual. This authorization is required at the time of signing the Franchise Agreement.
This ACH payment authorization allows Card My Yard to directly deduct payments owed to them from the franchisee's designated account. This is particularly relevant if the franchisee's royalty payments fall below the minimum royalty amount for any given month. In such cases, Card My Yard is entitled to deduct the difference immediately upon request.
This requirement ensures that Card My Yard can efficiently collect royalty payments and any other fees owed by the franchisee. It also places a responsibility on the franchisee to ensure that sufficient funds are available in the designated account to cover these payments. Failure to maintain a current and valid ACH payment authorization could potentially lead to a breach of the Franchise Agreement.