Can Card My Yard revoke approval of a supplier?
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.
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 approve for some or all of our franchisees). We currently require you to purchase yard letters/signs (or related materials and equipment) totaling at least $500 each year from us.
- (2) If you wish to use any item or service that we have not yet evaluated or (for items that we require you to purchase from designated or approved suppliers) if you wish to purchase or lease any such item from a supplier that we have not yet approved, you must submit 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
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 reserves 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 Card My Yard revoke approval of a supplier, franchisees must promptly discontinue using that supplier. Failure to comply with these sourcing provisions constitutes a material breach of the franchise agreement.
Card My Yard has specific 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 that Card My Yard has approved or designated. These approved suppliers must consistently meet Card My Yard's standards and specifications, maintain adequate quality controls, reliably supply the Card My Yard franchise network, and receive written approval from Card My Yard without subsequent disapproval.
If a franchisee wishes to use a product or service that Card My Yard has not evaluated or purchase from a non-approved supplier, they must submit a written request for approval. Card My Yard is not obligated to approve any particular supplier. Card My Yard may designate itself, its affiliates, or a third party as an approved or sole-approved supplier for any item, and Card My Yard and its affiliates may receive revenue from franchisee purchases and leases, including payments from designated or approved suppliers. Currently, franchisees must purchase at least $500 worth of yard letters/signs (or related materials and equipment) from Card My Yard each year.