Under what circumstances will Card My Yard charge an insurance reimbursement fee, and what does it cover?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| Liquidated Damages (Termination) | An amount equal to the greater of: (a) $6,600 or (b) the total royalties paid by you during the previous 12 months multiplied by two. If your Card My Yard business has not been open for at least 12 months, then your liquidated damages amount will be $6,600. | Upon your unauthorized closure of your Card My Yard business or any termination of the Franchise Agreement in connection with a breach by you. | This fee compensates us for your unauthorized closure of the Card My Yard business or any termination of the Franchise Agreement in connection with a breach by you. |
|---|---|---|---|
| Liquidated Damages (Non Reporting or Underreporting) | An amount equal to $5,000 per occurrence will be owed for each instance when we document your intentional non-reporting or under-reporting of revenues that you realize and receive from your Card My Yard business. | On demand | This fee compensates us for the time, expense, legal fees, and related costs associated with non-reporting, under reporting and intentional withholding of royalty and related obligations associated with revenue in the event that you intentionally omit revenues from your reporting. |
| Audit Fee | Cost of audit | When billed | Payable if an examination or audit shows you have understated any amount owed to us by 2% or more. |
| Insurance Reimbursement | An amount equal to our actual expenses for the required coverages | On demand | If you fail to maintain the required insurance, we may (but need not) obtain it for you. If we do, we will charge you a fee equal to our actual expenses for obtaining and maintaining the required coverages. |
Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, an insurance reimbursement fee may be charged to franchisees under specific circumstances. If a franchisee fails to maintain the required insurance coverage, Card My Yard has the option, but not the obligation, to obtain the necessary insurance on behalf of the franchisee.
Should Card My Yard choose to secure insurance coverage for a franchisee who has failed to do so, the franchisee will be charged a fee. This fee is equivalent to Card My Yard's actual expenses incurred in obtaining and maintaining the required insurance coverages. The fee is due on demand.
This policy ensures that all Card My Yard locations maintain the necessary insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. It is the franchisee's responsibility to maintain their own insurance; otherwise, they risk incurring additional expenses charged by Card My Yard.