Does Card My Yard receive rebates from vendors used by franchisees?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
of this Agreement that a majority of the Card My Yard businesses then operated by us or our Affiliates have made or are utilizing best efforts to make such improvements.
E. Sourcing.
- (1) You agree to comply with all of our standards and specifications for the purchase of all inventory, supplies, materials, fixtures, furnishings, equipment, Computer Systems, and other products used or offered for sale at the Card My Yard business. If we have approved or designated suppliers (which may include us or our Affiliates or third party manufacturers, distributors and other sources) for any such item, you agree to obtain these items from those suppliers. Our approved or designated suppliers are those who demonstrate on a continuing basis the ability to meet our standards and specifications; who have adequate quality controls and the capacity to supply the needs of the Card My Yard business franchise network promptly and reliably over an extended period of time; and who have been approved in writing by us and who have not thereafter been disapproved by us. We may designate ourselves, our Affiliates or a third party as an approved or designated supplier, or as the sole approved or designated supplier of any item. You agree that we and our Affiliates may derive revenue based on your purchases and leases (including, without limitation, from charging you for products and services we or our Affiliates provide to you and from payments made to us or our Affiliates by suppliers that we designate or appr
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Card My Yard and its affiliates may receive revenue from franchisee purchases and leases. This includes revenue from products and services Card My Yard or its affiliates provide to the franchisee, as well as payments from suppliers that Card My Yard designates or approves for some or all of its franchisees.
Specifically, franchisees are required to comply with Card My Yard's standards and specifications when purchasing inventory, supplies, materials, fixtures, furnishings, equipment, computer systems, and other products. If Card My Yard has approved or designated suppliers for any item, franchisees must purchase those items from those suppliers.
Card My Yard also requires franchisees to purchase yard letters/signs (or related materials and equipment) totaling at least $500 each year from Card My Yard. This arrangement allows Card My Yard to potentially benefit financially from the required purchases franchisees make to operate their businesses, which is a fairly common practice in franchising.