What rights does Card My Yard have regarding the evaluation of a proposed 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 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.
- F. Operational Requirements. You agree to operate the Card My Yard business in full conformity with our methods, standards and specifications as set forth in the Manuals and as from time to time otherwise prescribed in writing. Without limitation of the foregoing, you agree:
- (1) To sell or offer for sale all products and services we require using the method and manner of distribution we prescribe.
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 significant rights regarding the evaluation and approval of any proposed supplier a franchisee wishes to use. If a franchisee wants to use a supplier that Card My Yard has not yet evaluated or approved, the franchisee must submit a written request for approval. Card My Yard is not obligated to approve any particular supplier.
Card My Yard has the right to require franchisees to submit information, specifications, and samples to determine if the supplier meets Card My Yard's standards. Card My Yard can also send representatives to inspect the supplier's facilities or have samples delivered to an independent laboratory for testing. The franchisee or the proposed supplier is responsible for covering the costs of these inspections and tests, including Card My Yard's administrative expenses. Additionally, Card My Yard may charge a fee of $300 for each inspection and test conducted.
Card My Yard may base its approval of a supplier on various requirements, including product quality, prices, consistency, reliability, financial capability, labor relations, client relations, delivery frequency, purchase concentration, and service standards. Card My Yard also reserves the right to periodically reinspect approved suppliers and revoke approval if they fail to continue meeting Card My Yard's criteria. If Card My Yard revokes approval, the franchisee must immediately stop using that supplier. Failure to comply with these sourcing provisions constitutes a material breach of the Franchise Agreement.
This level of control allows Card My Yard to maintain quality and consistency across its franchise network. However, it also means that franchisees have limited flexibility in choosing suppliers and may incur costs associated with the evaluation process. Prospective franchisees should carefully consider these factors and discuss any concerns with Card My Yard before signing the Franchise Agreement.