Who is responsible for the costs of inspecting and testing a proposed Card My Yard supplier?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
it a written request for approval to us. You cannot purchase or lease any such item unless the supplier has been approved in writing by us. We are not required to approve any
particular supplier. We will have the right to require you to submit information, specifications and samples to us to enable us to determine whether the item complies with our standards and specifications and that the supplier meets our criteria. We also have the right to send our representatives to inspect the supplier's facilities and to have samples from the supplier be delivered to us or to an independent laboratory designated by us for testing. You or the proposed supplier will be required to pay for the cost of the inspection and the test (including our administrative expenses) and reimburse us for any costs or expenses we incur in connection with the evaluation of your proposed supplier. In addition to your reimbursement obligation, we may,in oursole discretion, charge you a fee of $300 for each inspection and each test conducted. We may condition our approval of a supplier on requirements relating to product quality, prices, consistency, reliability, financial capability, labor relations, client relations, frequency of delivery, concentration of purchases, standards of service (including prompt attention to complaints) or other criteria. 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
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the franchisee or the proposed supplier is responsible for covering the expenses associated with the inspection and testing of a potential supplier. This includes the franchisor's administrative costs. Additionally, Card My Yard has the discretion to charge the franchisee a fee of $300 for each inspection and test conducted.
This means that if a Card My Yard franchisee wants to use a supplier not already approved by the franchisor, they will likely incur costs to ensure the supplier meets Card My Yard's standards. These costs can include inspection fees, testing fees, and the franchisor's administrative expenses. The franchisor retains the right to inspect the supplier's facilities and test samples, further emphasizing the franchisee's responsibility for these costs.
This policy ensures that Card My Yard maintains control over its supply chain and product quality. However, it also places a financial burden on the franchisee, especially if they seek to use alternative suppliers. Franchisees should factor in these potential costs when evaluating the financial viability of their Card My Yard franchise and consider the potential impact on their profit margins. It is also important to note that Card My Yard can revoke approval of a supplier if they no longer meet the brand's criteria, requiring the franchisee to discontinue using that supplier.