Does Card My Yard reserve the right to reinspect approved suppliers?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to reinspect from time to time the facilities and products of any approved supplier and to revoke our approval of the supplier if the supplier fails to continue to meet any of our criteria. If we revoke our approval of any supplier, you agree to promptly discontinue use of that supplier. Your failure to comply with the provisions of this Section VIII.E. shall be deemed a material breach under this Agreement.
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 retains the right to periodically reinspect the facilities and products of any approved supplier. If a supplier fails to continue meeting Card My Yard's criteria, Card My Yard can revoke its approval. Should this occur, franchisees are obligated to promptly discontinue using that supplier. Failure to comply with these sourcing provisions constitutes a material breach of the franchise agreement.
Card My Yard maintains standards and specifications for all inventory, supplies, materials, fixtures, furnishings, equipment, computer systems, and other products used in the Card My Yard business. Franchisees must source these items from suppliers approved or designated by Card My Yard, which may include Card My Yard itself, its affiliates, or third-party manufacturers and distributors. These suppliers are chosen based on their ability to consistently meet Card My Yard's standards, maintain adequate quality controls, reliably supply the franchise network, and receive written approval from Card My Yard.
If a franchisee wishes to use a new item or purchase from a non-approved supplier, they must seek written approval from Card My Yard. Card My Yard is not obligated to grant such approval. This system allows Card My Yard to maintain quality and consistency across its franchise network by controlling the supply chain and ensuring that all products meet its standards. Card My Yard also requires franchisees to purchase yard letters/signs (or related materials and equipment) totaling at least $500 each year from them.
This level of control over sourcing is common in franchising to ensure brand consistency and quality. However, it also means franchisees have limited flexibility in choosing suppliers and may be required to purchase from Card My Yard or its affiliates, potentially impacting their costs and profit margins. Franchisees should carefully consider these requirements and their potential financial implications.