What were the total operating expenses for Card My Yard in 2023?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
anchise Agreement was executed.
GUARANTORS:
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EXHIBIT B TO THE FRANCHISE AGREEMENT
CONFIDENTIALITY AND NONCOMPETITION AGREEMENT
| 2023 2022 | 2021 | |
|---|---|---|
| Revenues: | ||
| Royalties | $ 2,349,533 $ 2,658,960 $ 3,957,477 | |
| Franchise fees | 400,660 431,653 | 593,100 |
| Boutique sales | 764,972 1,243,391 | 2,667,220 |
| CARDference fees | 6,400 38,950 | - |
| Total revenues | 3,521,565 4,372,954 | 7,217,797 |
| Cost of sales | 710,518 1,029,769 | 2,147,137 |
| Gross profit | 2,811,047 3,343,185 | 5,070,660 |
| Operating expenses: | ||
| Advertising and promotion | 126,163 137,038 | 241,493 |
| Amortization | 1,459,986 1,459,983 | 1,459,980 |
| Conferences | 15,103 230,890 | 42,611 |
| Credit card fees | 343,045 410,140 | 606,030 |
| Depreciation | 14,949 14,948 | 11,333 |
| Insurance | 54,760 63,906 | 50,969 |
| Legal and professional | 303,127 295,456 | 328,966 |
| Management and board fees | 459,742 450,000 | 370,834 |
| Payroll expenses and benefits | 1,717,718 1,449,774 | 2,032,952 |
| Rent | 165,150 151,775 | 125,254 |
| Software | 241,922 255,850 | 225,151 |
| Other | 128,731 100,092 | 176,013 |
| Total operating expenses | 5,030,396 5,019,852 | 5,671,586 |
| Loss from operations | (2,219,349) (1,676,667) | (600,926) |
| Other income (expense): | ||
| Interest expense | (23,948) - | - |
| Charitable contributions | (15,000) (20,750) | (37,233) |
| Other income | 914 261 | 15,915 |
| Other expense, net | (38,034) (20,489) | (21,318) |
| Net loss | (2,257,383) (1,697,156) | (622,244) |
| Member's equity, beginning of year | 10,783,542 12,480,698 | 14,931,385 |
| Member di |
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the total operating expenses for 2023 were $5,030,396. This figure represents the sum of various expenses incurred by Card My Yard, including advertising and promotion, amortization, conferences, credit card fees, depreciation, insurance, legal and professional fees, management and board fees, payroll expenses and benefits, rent, software, and other miscellaneous operating costs.
For a prospective franchisee, understanding the franchisor's operating expenses can provide insights into the financial health and stability of the company. While franchisees will have their own operating expenses, this gives a sense of the costs Card My Yard incurs to support the franchise system. It is important to note that the franchisee's individual operating expenses will vary based on factors such as location, sales volume, and management practices.
Reviewing these expenses can help potential franchisees assess how efficiently Card My Yard manages its resources and whether the costs are reasonable in relation to the revenue generated. A high level of operating expenses compared to revenue could indicate potential financial challenges for the franchisor, which may indirectly affect the support and services provided to franchisees. Therefore, it is advisable for prospective franchisees to carefully analyze these figures and compare them to industry benchmarks to make an informed investment decision.