What should a prospective Card My Yard franchisee understand about the financial performance representations?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
promotional efforts.
ITEM 19: FINANCIAL PERFORMANCE REPRESENTATIONS
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the Franchise Disclosure Document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about possible performance at a particular location or under particular circumstances.
The following tables present historic financial performance information for our franchised locations. As indicated below, the tables in this Item 19 show results achieved during calendar year 2023 (the "Reporting Period").
No information is included in this Item 19 regarding our two company-owned locations.
We had a total of 531 Card My Yard Businesses (529 franchised locations plus 2 company-owned locations) operating as of the beginning of the Reporting Period. All franchised Card My Yard locations that were open and operating throughout all 12 months of the Reporting Period have been included in the tables below (the 21 who opened during the Reporting Period but were not open and operating for the entire period are excluded). 5 of our franchised locations ceased operation during 2024, so those 5 locations were not included in this Item 19, and the 2 company-owned locations were also excluded from this Item 19.
The tables below show the Reporting Period results for the 505 franchised Card My Yard businesses that were in operation throughout the entire Reporting Period. Of note, for Table 4, the data was not available for all of the historical period more than seven years ago for certain locations due to the third party provider's database limitations, and that data is not available or reported and as a result the franchises that are 7+ years old represent the 20 such franchises for which data is available. None were excluded apart for those for whom the database had no information or historical data during the relevant historical period.
Card My Yard businesses that were open for less than 12 months as of December 31, 2024, have also been excluded from the tables below.
The financial information below is from the unaudited books and records of our franchisees. This information has not been independently audited. The notes that follow the tables are an integral part of the information presented in this item and provide information to help you better understand the financial information.
Some outlets have earned this amount. Your individual results may differ. There is no assurance that you'll earn as much.
TABLE 1
| Franchise Location Class Opened Date | Number of Franchise Locations in Class Cohort | Average | Median | Minimum | Maximum | Number of Franchises that Attained or Exceeded Average | |---|---|---|---|---|---|---| | Franchise Locations | 68 | $38,644 | $34,711 | $6,384 | $112,851 | 30 (44%) | | Opened in 2017 (Locations | | | | | | | | that are 7+ years old) | | | | | | | | Franchise Locations | 27 | $28,730 | $25,764 | $10,235 | $57,965 | 11 (41%) | | Opened in 2018 (Locations | | | | | | | | that are 6 years old) | | | | | | | | Franchise Locations | 54 | $25,791 | $20,874 | $3,009 | $58,415 | 20 (37%) | | Opened in 2019 (Locations | | | | | | | | that are 5 years old) | | | | | | | | Franchise Locations | 177 | $18,416 | $15,120 | $1,598 | $79,501 | 69 (39%) | | Opened in 2020 (Locations | | | | | | | | that are 4 years old) | | | | | | | | Franchise Locations | 103 | $10,436 | $7,409 | $1,276 | $42,918 | 35 (34%) | | Opened in 2021 (Locations | | | | | | | | that are 3 years old) | | | | | | | | Franchise Locations | 36 | $12,812 | $9,453 | $1,890 | $38,654 | 14 (39%) | | Opened in 2022 (Locations | | | | | | | | that are 2 year old) | | | | | | | | Franchise Locations | 40 | $9,183 | $7,521 | $1,298 | $28,648 | 14 (35%) | | Opened in 2023 (Locations | | | | | | | | that are 1 year old) | | | | | | | | System (all franchise | 505 | $19,721 | $14,973 | $1,276 | $112,851 | 193 (38%) | | locations over 1 year | | | | | | | | old) | | | | | | | | This represents all the franchise locations opened in a certain year and are grouped by age. For example, the 68 | | | | | | | | locations opened in 2017 are 7+ years old. This group of locations earned average gross sales per franchise location of | | | | | | | | $38,644 from activities in 2024. | | | | | | | This represents all the franchise locations opened in a certain year and are grouped by age. For example, the 68 locations opened in 2017 are 7+ years old. This group of locations earned average gross sales per franchise location of $38,644 from activities in 2024.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 56–64)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Item 19 contains financial performance representations regarding the franchise's historical financial performance. The FTC permits franchisors to provide information about potential financial performance if there is a reasonable basis for the information presented in the Franchise Disclosure Document. Any financial performance information that differs from Item 19 is only permissible if Card My Yard provides the records of an existing outlet being considered for purchase, or supplements the information in Item 19 with details about potential performance at a specific location or under particular circumstances.
The financial performance information is based on the unaudited books and records of Card My Yard franchisees. The financial data excludes Card My Yard businesses open for less than 12 months as of December 31, 2024, and the two company-owned locations. The tables in Item 19 show results achieved during calendar year 2023. The tables include data from 505 franchised Card My Yard businesses that operated throughout the entire reporting period. However, data may not be available for all locations older than seven years due to third-party database limitations.
It is important to note that the figures presented by Card My Yard do not include all operating expenses. A prospective franchisee will have additional expenses such as wages, costs of goods sold, vehicle maintenance, insurance, local marketing, marketing fees, and utilities. These expenses must be deducted from gross sales and gross profit to determine net income or profit. The FDD advises that a prospective Card My Yard franchisee should conduct an independent investigation of the costs and expenses they will incur while operating their Card My Yard business. The FDD states that written substantiation of the data used in preparing the financial performance representation will be made available upon reasonable request.
The FDD also includes data related to average ticket prices. For example, for all franchise locations over one year old, the average ticket price was $123.77, while the median ticket price was $119.08. The minimum ticket price was $0.00, and the maximum was $1,448.95. 246 franchises (49%) attained or exceeded the average. The FDD also includes data related to returning customers as a percentage of total referrals. In 2024, 53.30% of total referrals were from returning customers, compared to 50.50% in 2023 and 43.60% in 2022. Finally, the FDD states that other than the financial performance representations included in Item 19, Card My Yard does not make any other financial performance representations, and does not authorize employees or representatives to do so either orally or in writing.