What are the primary sources of revenue for Card My Yard?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
"Gross Sales" is the total selling price of all services and products and all income of every other kind and nature related to the Card My Yard business, whether for cash or credit and regardless of collection in the case of credit. "Gross Sales" includes all proceeds from the sale of coupons and gift cards/certificates. However, when those coupons or gift cards/certificates are redeemed, you are not required to count the retail value of the services provided upon redemption in determining Gross Sales for royalty purposes or for other fees calculated in respect of Gross Sales, except that if you fail to record and report sales proceeds for royalty purposes when a coupon or gift card/certificate is sold, or if coupons or gift cards/certificates are distributed free of charge without our written consent, then you will be required to pay us royalties based on the retail value of the services provided in exchange for the coupon or gift card/certificate. "Gross Sales" does notinclude (i)salestaxes collected from customers of the Card My Yard business; (ii) tips or gratuities paid directly to your employees by customers of the Card My Yard business or paid to you and turned over by you to your employees in lieu of direct tips or gratuities; (iii) rush fees paid to the Card My Yard business; (iv) delivery fees paid to the Card My Yard business; (v) returns to shippers or manufacturers; and (vi) proceeds from isolated sales of trade fixtures not constituting any part of the products and services offered for sale at
the Card My Yard business or having any material effect upon the ongoing operation of the Card My Yard business.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the primary source of revenue for a Card My Yard franchise is derived from the total selling price of all services and products related to the Card My Yard business. This includes income of every kind, whether in cash or credit, and regardless of whether the credit has been collected. Gross sales also encompass all proceeds from the sale of coupons and gift cards/certificates. However, when these coupons or gift cards/certificates are redeemed, the retail value of the services provided upon redemption is not included in gross sales for royalty purposes or other fees calculated based on gross sales, provided that the sales proceeds are recorded and reported when the coupon or gift card/certificate is sold. If not, royalties will be based on the retail value of the services provided.
However, the 2025 FDD specifies several exclusions from gross sales calculations. These exclusions include sales taxes collected from customers, tips or gratuities paid directly to employees or turned over to them, rush fees, delivery fees, returns to shippers or manufacturers, and proceeds from isolated sales of trade fixtures that do not constitute part of the products and services offered or materially affect the ongoing operation of the Card My Yard business.
For a prospective franchisee, understanding what constitutes "Gross Sales" is crucial because it directly impacts royalty payments and other fees owed to the franchisor. Accurate tracking and reporting of revenue, with careful attention to the inclusions and exclusions defined in the franchise agreement, are essential for financial compliance and profitability. Franchisees should pay close attention to the handling of coupons and gift cards to ensure proper royalty calculation and avoid potential penalties.