What is the pre-opening termination fee for a Card My Yard franchise?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
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- F. Pre-opening Termination Fee. If you encounter an unforeseen health or personal issue prior to beginning operations that prevents you from beginning operations of your Card My Yard business, we may, at our option, permit you to terminate this Agreement by mutual written agreement in a form acceptable to us, which will, among other things, include your payment to us of a termination fee equal to $1,000 plus any out-of-pocket expenses incurred by us. If you fail to successfully complete our initial training program to our satisfaction within 60 days after executing this Agreement, we may, at our optio
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, under certain conditions, a franchisee may be required to pay a pre-opening termination fee. If a franchisee encounters an unforeseen health or personal issue that prevents them from starting operations, Card My Yard may allow the franchisee to terminate the agreement. This termination requires a mutual written agreement and the franchisee must pay Card My Yard a termination fee. This fee is equal to $1,000 plus any out-of-pocket expenses incurred by Card My Yard.
Additionally, if a franchisee fails to successfully complete the initial training program to Card My Yard's satisfaction within 60 days after signing the Franchise Agreement, Card My Yard has the option to terminate the agreement. In this case, Card My Yard will retain 50% of the initial franchise fee, and the other 50% will be returned to the franchisee.
It is important for prospective franchisees to understand these conditions and the associated costs, as unforeseen circumstances or failure to meet training requirements could lead to termination fees. Franchisees should discuss these potential scenarios with Card My Yard to fully understand the implications and explore possible alternatives.