Is Card My Yard required to establish a Marketing Fund?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
e's governing documents. Your Cooperative contributions will not be applied to satisfy any portion of your local advertising requirement under Section IX.A.
- C. MarketingFund. We may, at our option, establish a marketing program fund (the "MarketingFund" or "Fund"). If a Marketing Fund is established, you must make weekly contributions to the Fund in an amount equal to the greater of: (a) one-half of one percent (0.5%) of your Card My Yard business' Gross Sales or (b) $25 per month in the first 12 months of this Agreement; $40 per month in months 13 through 24 of this Agreement; and $65 per month in each 12-month period thereafter. In our sole discretion, we may increase the amount you must contribute to the Fund upon not less than thirty (30) days' written notice to you; provided, however, that you shall not be required to contribute more than two percent (2%) of the Card My Yard business' Gross Sales to
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 has the option, but is not required, to establish a marketing program fund, referred to as the "MarketingFund" or "Fund". If Card My Yard establishes a Marketing Fund, franchisees must make weekly contributions. The contribution amount is the greater of (a) 0.5% of the Card My Yard business's Gross Sales or (b) a set monthly minimum that increases over time: $25 per month in the first 12 months, $40 per month in months 13 through 24, and $65 per month in each 12-month period thereafter. Card My Yard may increase the contribution amount with 30 days' written notice, but it cannot exceed 2% of the business's Gross Sales, subject to the monthly minimums. These contributions are in addition to local advertising requirements.
Card My Yard retains significant control over the Marketing Fund. They direct all programs financed by the Fund and have sole discretion over creative concepts, materials, endorsements, geographic placement, market placement, and media allocation. The funds can be used for various advertising and marketing activities, such as preparing advertising materials, administering advertising programs, developing websites, and supporting customer loyalty programs.
Card My Yard will account for the Marketing Fund separately from their other funds and will provide an annual unaudited statement of monies collected and costs incurred to franchisees upon written request. They may spend more or less than the aggregate contributions in any fiscal year and may borrow or invest to cover deficits or surpluses. All interest earned on the fund will be used to pay advertising costs before other assets are expended. Card My Yard also has the right to defer, reduce, suspend, or terminate the Fund with 30 days' written notice. If terminated, unspent monies will be distributed to contributors in proportion to their contributions over the preceding 12 months.
In addition to the Marketing Fund, Card My Yard may establish advertising cooperatives. If a cooperative is established for an area that includes the franchisee's protected area, the franchisee is required to contribute a monthly amount as set forth in the cooperative's governing documents and must participate as a member. These cooperative contributions do not count toward the local advertising requirement. Card My Yard also develops and administers promotional programs that franchisees are required to participate in, and franchisees must adhere to Card My Yard's advertising standards for any advertising they conduct.