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What were the total operating expenses for Card My Yard in 2023?

Card_My_Yard Franchise · 2025 FDD

Answer 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.

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.