Under what condition will Card My Yard establish an advertising cooperative?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to designate any geographic area in which two (2) or more company-owned or franchised Card My Yard businesses are located as a region for purposes of establishing an advertising cooperative ("Cooperative").
If we do, each Cooperative will be organized and governed as, and will begin operation on a date, we determine.
Any Cooperative may be terminated by us, in our sole discretion, upon written notice to you.
Cooperatives will be organized for the exclusive purpose of administering advertising programs and developing promotional materials for local advertising and will be operated solely as a conduit for the collection and expenditure of advertising contributions.
If a Cooperative is established for a geographic area that includes all or part of the Protected Area, you will be required to contribute to the Cooperative a monthly amount set forth in the Cooperative's governing documents, and you must execute the applicable Cooperative documents promptly upon our request and participate as a member of the Cooperative.
Among other things, this means that (i) you must submit to the Cooperative and to us all statements and reports that we or the Cooperative may require, and (ii) you must contribute to the Cooperative the amounts required by the Cooperative's governing documents.
Your Cooperative contributions will not be applied to satisfy any portion of your local advertising requirement under Section IX.A.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Card My Yard has the right to designate any geographic area with two or more company-owned or franchised Card My Yard businesses as a region for establishing an advertising cooperative. The cooperative will be organized and governed as, and will begin operation on a date determined by Card My Yard. Card My Yard also has the right to terminate any cooperative at its sole discretion with written notice.
These cooperatives are formed exclusively for administering advertising programs and developing promotional materials for local advertising. They operate as a conduit for collecting and spending advertising contributions. If a cooperative is established in an area that includes a franchisee's protected area, the franchisee is required to contribute a monthly amount as specified in the cooperative's governing documents. Franchisees must also execute the cooperative documents promptly and participate as a member of the cooperative.
Franchisees are required to submit all statements and reports requested by Card My Yard or the cooperative and contribute the amounts required by the cooperative's governing documents. It is important to note that these cooperative contributions will not count towards fulfilling the franchisee's local advertising requirements as outlined in Section IX.A of the Franchise Disclosure Document. This means franchisees must budget separately for both cooperative fees and their individual local advertising obligations.