Does Card My Yard have a specific budget allocated for public figure endorsements?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
Marketing Fund and Regional Advertising
Marketing Fund Contributions
In addition to local advertising (individually or through a Cooperative), we reserve the right to establish a franchisee marketing fund (the "Fund" or "Marketing Fund"). If a Marketing Fund is established, you must make periodic contributionsto the Fund of up to 2% of the Card My Yard business' Gross Sales, provided that your initial periodic contributions will each be an amount equal to the greater of: (a) one-half of one percent (0.5%) of the Card My Yard business' monthly Gross Sales or (b) $25 per month in the first 12 months of your agreement; $40 per month in months 13 through 24; and $65 per month in each 12-month period thereafter. In our sole discretion on not less than 30 days' written notice, we may increase the amount you must contribute to the Fund; provided, however, that you will not be required to contribute more than 2% of the Card My Yard business's Gross Sales to the Fund, subject to the $20 per month minimum contribution requirement. Your required contributions to the Fund are in addition to amounts you are required to spend for local advertising.
Administration of the Marketing Fund
We orsomeone we designate willseparately administer the Fund. The Fund is not a trust or escrow account, and we do not have any fiduciary obligations with respect to the Fund. We will direct all programs financed by the Fund, including the creative concepts, materials, endorsements, and the geographic market and media placement and allocation thereof. We may use the Fund to satisfy the costs of producing video, audio and written advertising materials; administering regional and multi-regional advertising programs; developing and maintaining an Internet website; developing and maintaining gift card, membership and other customer loyalty programs; and supporting public relations, market research and other advertising, promotion and marketing activities. We are not required to make expenditures for you that are equivalent or proportionate to your Fund contributions or to ensure that any particular franchisee benefits directly or in proportion to its contributions to the Fund. Except for any portion of the Fund spent on website development and maintenance (a portion of which may include soliciting the sale of franchises using our website or websites
Source: Item 18 — PUBLIC FIGURES (FDD page 55)
What This Means (2025 FDD)
According to the 2025 Card My Yard FDD, while there isn't a specific, separately itemized budget for public figure endorsements, the franchise does allocate funds for various marketing and advertising activities. Card My Yard reserves the right to establish a franchisee marketing fund, where franchisees may be required to contribute up to 2% of their gross sales.
The funds collected are used at the discretion of Card My Yard for programs including creative concepts, advertising materials, and endorsements. This means that while a specific amount isn't set aside for celebrity or public figure endorsements, the marketing fund can be used for this purpose as part of its broader advertising and marketing initiatives.
As a Card My Yard franchisee, it's important to understand that the franchisor has sole discretion over how the marketing funds are spent. While endorsements are a possibility, there's no guarantee that funds will be used for this purpose, or that any particular franchisee will directly benefit from the fund's activities. A prospective franchisee should inquire about Card My Yard's past marketing strategies and future plans for the marketing fund to better understand how these funds might be used to promote the brand.