factual

Are there currently any purchasing or distribution cooperatives for the Card My Yard franchise system?

Card_My_Yard Franchise · 2025 FDD

Answer from 2025 FDD Document

There are currently no purchasing or distribution cooperatives for the Card My Yard franchise system.

Your obligations to purchase or lease goods, services, supplies, fixtures, equipment, inventory, and computer hardware and software from us or our designee, from suppliers we approve, or under our specifications are all considered "required purchases." We describe your purchase obligations in detail in the preceding sections of this Item 8 (under the headings "Designated Suppliers", "Approved Suppliers" and "Purchases According to Specifications"). The magnitude of required purchases in relation to all purchases you make to establish and operate the Card My Yard business is difficult to determine due to the highly variable nature of expenditures necessary to establish and operate the Card My Yard business as described in Item 7.

We estimate that your initial required purchases will range between 60% and 80% of the cost of your total initial purchases or leases necessary to establish the Card My Yard business. We estimate your required purchases for the ongoing operation of the Card My Yard business will range between 20% and 30% of your total annual purchases or leases.

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, there are currently no purchasing or distribution cooperatives for the Card My Yard franchise system. However, Card My Yard retains the option to negotiate purchase arrangements with suppliers for the benefit of franchisees, potentially including price terms for items like equipment, retail products, uniforms, and logoed products.

Card My Yard may receive rebates or other material consideration from approved or designated sources, although they do not currently do so. The company emphasizes that it will not provide material benefits to franchisees based upon their use of designated or approved suppliers.

Franchisees are obligated to purchase or lease certain goods, services, and supplies from Card My Yard or its designees, or from approved suppliers, which are considered "required purchases." Initial required purchases are estimated to be 60% to 80% of the total initial purchases, while ongoing required purchases are estimated to be 20% to 30% of total annual purchases. This means a significant portion of a franchisee's expenses will be directed through channels approved or designated by Card My Yard, ensuring quality control and brand consistency but potentially limiting the franchisee's ability to seek out lower-cost alternatives independently.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.