Is the transferee of a Card My Yard franchise required to pay an initial franchise fee?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
The transferee shall enter into a written agreement, in a form satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all of your obligations, covenants and agreements under this Agreement;
- (7) The transferee shall execute our then-current form of franchise agreement for a term ending on the expiration date of this Agreement (including any renewal terms provided by this Agreement).
The new franchise agreement shall supersede this Agreement in all respects and its terms may differ from the terms of this Agreement (except that the fees imposed on the transferee will not be greater than the fees that we then impose on similarly situated transferees), provided that the transferee shall not be required to pay an initial franchise fee.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a transferee is not required to pay an initial franchise fee. However, the transferee must meet several other conditions. The transferee must meet Card My Yard's then-current qualifications, and the Principal Owner, General Manager, and any other personnel Card My Yard requires must complete any training programs then in effect for Card My Yard businesses. The transferee is responsible for the expenses associated with this training. The transferee must also renovate, modernize, and upgrade the Card My Yard business to conform to Card My Yard's then-current System image, standards, and specifications, at the transferee's expense. This is only applicable if the business has not already been renovated.
Additionally, the transferee must enter into a written agreement assuming full liability for all obligations under the existing franchise agreement. The transferee will execute Card My Yard's then-current form of franchise agreement for a term ending on the expiration date of the original agreement, including any renewal terms. The terms of the new franchise agreement may differ from the original agreement, but the fees imposed on the transferee will not be greater than the fees Card My Yard imposes on similarly situated transferees.
It is important to note that while the initial franchise fee is waived, the transferee will likely incur other costs such as training, renovations, and a transfer fee. The transfer fee is the greater of $3,000, or 5% of the sale/transfer price. These costs should be carefully considered when evaluating the financial viability of acquiring an existing Card My Yard franchise.