How is the transfer fee calculated for a Card My Yard franchise transfer?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
er any liabilities that may have been incurred prior to the effective date of the transfer, and shall execute any and all instruments reasonably requested by us to evidence such
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard Franchise Disclosure Document, the transfer fee calculation depends on the sale/transfer price. Specifically, the transfer fee is the greater of $3,000 or 5% of the sale/transfer price.
This means that if a franchisee sells their Card My Yard business for $50,000, the transfer fee would be $2,500 (5% of $50,000). However, since the minimum transfer fee is $3,000, the franchisee would have to pay $3,000. If the sale price was $100,000, the transfer fee would be $5,000 (5% of $100,000).
It's important to note that this fee is in addition to other conditions that Card My Yard may impose on the transfer, such as requiring the transferee to meet current qualifications, renovate the business to current standards (if applicable), and sign the then-current franchise agreement. The transferor also remains liable for obligations incurred before the transfer date and must maintain tail coverage on insurance policies.