What is the purpose of the 'Remarks' column in the Card My Yard fee table?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fees(1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | An amount equal to 25% of your Gross Sales during the first seven months following the Effective Date of your Franchise Agreement. Beginning in your eighth month after the Effective Date, an amount equal to the greater of: (a) 25% of your Gross Sales, or (b) the applicable minimum monthly amounts shown in Note 3 following this table. Renewing franchisees th will be subject to the 5 year minimum royalty requirements throughout the term of any renewal franchise agreement. | We directly collect all payments from your customers through our website, deduct royalties and all other amounts that you owe to us, deduct amounts paid for sales tax, and then distribute the remaining funds electronically to your designated bank account on a weekly basis (currently every Friday, subject to delay for bank holidays). If your royalty payments during any applicable month fall below the minimum royalty amount for that month, you must pay us the difference immediately upon our request, and we will be entitled, at our option, to deduct the difference from your designated account via ACH/EFT. | See Note 2 for the definition of Gross Sales. Our system is designed so that your customers pay all fees directly to us through our website. The website then calculates and distributes the "Net Proceeds" (defined below) of those funds to y |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the 'Remarks' column in the fee table provides additional information and clarification regarding specific fees. For the Royalty Fee, the 'Remarks' column refers to Note 2 for the definition of Gross Sales and explains that Card My Yard's system is designed for customers to pay fees directly through the website. The website then calculates and distributes the "Net Proceeds" to the franchisee.
This is beneficial for prospective franchisees as it clarifies how the royalty fee is calculated based on Gross Sales and how the payment process works. The system is designed so that the customer pays Card My Yard directly, and Card My Yard then distributes the net proceeds to the franchisee after deducting royalties, other fees, and sales tax.
This arrangement reduces the administrative burden on the franchisee, as Card My Yard handles the collection of payments and the calculation of royalties. The franchisee should carefully review Note 2 to fully understand what is included and excluded from Gross Sales, as this directly impacts the royalty fee calculation.