Are there any conditions under which the fees for a Card My Yard franchise might be waived or altered?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| Liquidated Damages (Non Reporting or Underreporting) | An amount equal to $5,000 per occurrence will be owed for each instance when we document your intentional non-reporting or under-reporting of revenues that you realize and receive from your Card My Yard business. | On demand | This fee compensates us for the time, expense, legal fees, and related costs associated with non-reporting, under reporting and intentional withholding of royalty and related obligations associated with revenue in the event that you intentionally omit revenues from your reporting. | | Audit Fee | Cost of audit | When billed | Payable if an examination or audit shows you have understated any amount owed to us by 2% or more. | | Interest and Late Fees | Interest of 18% per annum or the maximum rate allowed by applicable law, or, at our option, $100 for each failure to timely pay an amount owed under the Franchise Agreement | On demand | We may charge interest or a late fee for any delinquent amounts due under the Franchise Agreement. | | Marketing | Currently $0. If | If implemented, we will | businesses that are located in your Cooperative territory, such company owned Card My Yard businesses will NOT have voting power to increase your required Cooperative contributions. All or a portion of your contributions to a Cooperative may be used to establish and/or maintain a website(s) focused on promoting the Card My Yard Concept in and around your market area. See Note 2 for the definition of Gross |
You must complete at least 24 promotional yard greeting services (worth a total of approximately $2,400) during each 12 -month period under your agreement, and you must also spend at least the following amounts on local advertising: (a) $300 in the first 12 months of your agreement, (ii) $500 in months 13 through 24 of your agreement, and (iii) $800 in each 12 month period thereafter.
- (1) All fees and expenses described above are non-refundable and, unless otherwise indicated, are imposed uniformly by, and are payable to, us. Unless we have noted differently, we may increase these amounts based on changes in market conditions, our cost of providing services and future policy changes, but we have no present plans to increase any fees.
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, several fees may be imposed or adjusted based on specific circumstances.
For instance, if a franchisee fails to meet the minimum local advertising requirements or complete the required number of promotional yard greeting services (24 promotional yard greeting services worth approximately $2,400 annually), Card My Yard may require the franchisee to pay the corresponding amount to them so that Card My Yard can purchase local marketing services for the Protected Area. The local advertising requirements are (a) $300 in the first 12 months of your agreement, (ii) $500 in months 13 through 24 of your agreement, and (iii) $800 in each 12 month period thereafter. Additionally, Card My Yard may charge interest at 18% per annum (or the maximum legal rate) or a $100 late fee for overdue payments. The marketing fee is currently $0, but if implemented, it will be 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.
Furthermore, if an audit reveals that a franchisee has understated amounts owed to Card My Yard by 2% or more, the franchisee will be responsible for the cost of the audit. Franchisees are also responsible for liquidated damages in certain situations. An amount equal to $5,000 per occurrence will be owed for each instance when Card My Yard documents your intentional non-reporting or under-reporting of revenues that you realize and receive from your Card My Yard business. If a franchisee does not comply with the Franchise Agreement, they must cover Card My Yard's enforcement costs, including attorney's fees.
Card My Yard may increase certain fees based on market conditions, the cost of providing services, and future policy changes. However, Card My Yard states they have no present plans to increase any fees. Prospective franchisees should be aware of these potential additional costs and ensure they understand the conditions under which these fees may be applied.