What sections of the Card My Yard Franchise Agreement discuss inspections and audits?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Conduct periodic evaluations of your operations. (Franchise Agreement, Section VI.E.);
If requested, you must submit to us any reports (including substantiating receipts) detailing your local advertising expenditures that we may require. We may reallocate the proportion of those monies directed to local advertising (individually or through a Cooperative) and to the Marketing Fund. (Franchise Agreement, Section IX.)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 34–43)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Section VI.E. of the Franchise Agreement addresses periodic evaluations of a franchisee's operations. This implies that Card My Yard will conduct inspections to ensure compliance with their standards.
Additionally, Section IX of the Franchise Agreement requires franchisees to submit reports, including substantiating receipts, detailing local advertising expenditures if requested by Card My Yard. This allows Card My Yard to monitor advertising spend and ensure franchisees meet their obligations.
While the FDD mentions periodic evaluations and the submission of advertising expenditure reports, it does not explicitly detail the scope, frequency, or specific procedures for inspections or audits. A prospective franchisee should seek clarification from Card My Yard regarding the exact nature of these evaluations and audits, including what aspects of the business will be reviewed, how often they will occur, and what the consequences are for non-compliance.