What standards and specifications must Card My Yard franchisees comply with regarding the purchase of supplies, materials, and equipment?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
ERVICES**
To ensure a uniform image and uniform quality of services and products at the Card My Yard businesses and in conjunction with the System, you must maintain and comply with our quality standards and specifications. You must operate your Card My Yard business in accordance with our then-current approved specifications and standards pertaining to equipment, inventory, techniques and procedures, and you must purchase certain products and services from suppliers that we approve or designate. In addition to meeting our specifications and standards, it is solely your responsibility to ensure that your Card My Yard business complies with all local, state and federal laws, building code requirements, the Occupational Safety and Health Act and the Americans with Disabilities Act (ADA).
Required Purchases
We impose sourcing/supplier requirements for certain items, including, among other things, the yard letters and signs that you must use in the operation of your Card My Yard business. We currently require you to purchase certain products only from us or other third-party designated suppliers.
We do not currently require you to purchase any products or services from our affiliates.
We are currently the only approved supplier for all yard letters and signs to be used in the operation of your Card My Yard business as well as any "Card My Yard" branded items, but we do not require you to purchase any initial inventory from us as your initial inventory items are provided at no cost beyond the initial franchise fee that you must pay to us. The products that you must purchase only from us or other designated suppliers include the following:
Designated Suppliers
{00281964-1 } 27 We reserve the right to designate specific suppliers for the products and services used and sold in the Card
My Yard businesses, and we or our affiliates are the sole source for some products or services. We reserve the right to change or add designated suppliers from time to time at our option upon written notice to you. As of the date of this Disclosure Document, we require you to purchase the following categories of itemsfrom the specific designated sources described below:
Yard Letters and Signs
We are the only approved supplier for yard letters and signs. Therefore, we require you to purchase all of your yard letters and signs from us, and you must return them to us at the end of your franchise agreement within ten (10) days. You will be required to obtain certain items from us at then-current costs, at a minimum of $500 per year. We reserve the right to add or remove items from the list of required yard letters and signs from time to time at our discretion. We provide you with your initial set of yard letters, stakes, business cards, and door hangers at no cost to you. If you later elect to purchase additional yard letters or signs you may do so at your discretion.
Equipment Related to New Products and Services
If we require you to begin offering any new products or services, we will provide you with 90 days' notice ofsuch requirements and identify the items or equipment that you must purchase in order to offer such new products or services. If you fail to purchase the items or equipment required to offer the new products or services within a reasonable time after notification (in no event longer than 90 days), we may, at our option, purchase such items or equipment on your behalf and ship them to you while deducting the costs of the items and shipping (up to $1,000 per year) from your designated account via ACH/EFT withdrawal.
Branded Items
We are the only approved supplier for "Card My Yard" branded items. Therefore, we require you to purchase all of your "Card My Yard" branded items (including, but not limited to, stationary, business cards, office supplies, clothing, hats, etc.) from us (or a third party designated by us, if applicable). We reserve the right to add or remove items from the list of required "Card My Yard" branded items from time to time in our discretion.
Payment Processing Services
You must use our payment processing services throughout the term of your Franchise Agreement. These services include collection of all fees directly from your customers and distribution of funds to you after deducting royalties and any other amounts owed to us. We reserve the right to delegate all or some of our payment processing duties to a third party or parties selected by us at our discretion from time to time. We do not charge you a fee for these services.
Yard Stakes
You must purchase all of your yard stakes from us or from our designated third-party source, Parker Davis located in Charlotte, North Carolina.
New or Additional Designated Sources
Upon reasonable notice to you, we may require you to use new or additional designated sources for the
purchase of these or other products or services used in the operation of your Card My Yard business.
Approved Suppliers
If we have approved suppliers (including manufacturers, distributors and other sources) for any items, supplies, materials, fixtures, furnishings, equipment, site plans and designs, computer systems and other products used or offered for sale at the Card My Yard business, you must obtain these items from one of those approved suppliers. Approved suppliers are those who demonstrate on a continuing basis the ability to meet our then-current standards and specifications, who have adequate quality controls and the capacity to supply the needs of the Card My Yard franchise network promptly and reliably, whom we have approved in writing and whom we have not later disapproved. We have designated ourselves or our affiliates as approved or designated suppliers for certain items as described above in this Item 8.
We also have the right to make available to you for resale in the Card My Yard business merchandise identifying the Card My Yard Concept. This may include Card My Yard memorabilia, like T-shirts, cups and other promotional products. If we make this type of merchandise available, we will require you to purchase it from us, our affiliate or a supplier we designate in amounts necessary to meet your customer demand.
If we require that an item be purchased from an approved supplier and you wish to purchase it from a supplier we have not approved, you must submit to us a written request for approval. You must not purchase or lease the item from the supplier until and unless we have approved the supplier in writing. We 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 inspect the supplier's facilities, and to have samplesfrom the supplier delivered to us or to an independent laboratory we designate for testing. We may condition our approval of a supplier on requirements relating to product quality, prices, consistency, reliability, financial compatibility, labor relations, client relations, frequency of delivery, concentration of purchases, standards of service (including prompt attention to complaints) or other criteria. We may re-inspect the facilities and products of any approved supplier and may revoke our approval upon the supplier's failure to continue to meet any of our then-current criteria. If we revoke our approval of any supplier, you must promptly discontinue use of that supplier. You must reimburse usfor the coststhat we incur in the supplier approval process. The costs for testing/inspection of a product will vary based on the testing required for the particular product, and we will provide an estimate of the costs to you before testing a product or inspecting any facilities. Nothing requires us to approve any particular supplier, and we will notify you of our approval or disapproval within 60 days after receiving all requested information. Our specifications for products and criteria for supplier approval are generally issued through written communications and are available to franchisees and approved suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 27–32)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees must adhere to specific quality standards and specifications to maintain a consistent brand image. This includes using approved equipment, inventory, techniques, and procedures. Franchisees are required to purchase certain products and services from suppliers that Card My Yard approves or designates.
Card My Yard mandates specific sourcing for items like yard letters and signs, requiring franchisees to purchase these exclusively from Card My Yard or designated third-party suppliers. Currently, Card My Yard is the sole approved supplier for all yard letters and signs, as well as branded items. The initial inventory is provided at no cost beyond the initial franchise fee. Franchisees must also use Card My Yard's payment processing services throughout the franchise term without incurring a fee.
If a franchisee wishes to use a non-approved supplier, they must submit a written request for approval, providing necessary information, specifications, and samples. Card My Yard has the right to inspect the supplier's facilities and test samples, with the franchisee responsible for reimbursing the associated costs. The cost for testing/inspection of a product will vary based on the testing required for the particular product, and Card My Yard will provide an estimate of the costs before testing a product or inspecting any facilities. Card My Yard will notify the franchisee of approval or disapproval within 60 days after receiving all requested information.
Card My Yard estimates that initial required purchases will range between 60% and 80% of the total initial costs to establish the business. For ongoing operations, required purchases are estimated to be between 20% and 30% of total annual purchases or leases. Franchisees are also obligated to purchase yard stakes from Card My Yard or its designated third-party source, Parker Davis. Additionally, franchisees must purchase all "Card My Yard" branded items from Card My Yard or a designated third party. If Card My Yard requires franchisees to offer new products or services, they will provide 90 days' notice and identify the necessary equipment, with a provision allowing Card My Yard to purchase the items on the franchisee's behalf, deducting costs up to $1,000 per year from their account if the franchisee fails to comply within the given timeframe.