Under what conditions can Card My Yard terminate the Marketing Fund?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
We may terminate the Fund at any time on 30 days prior written notice to you. If we terminate the Fund, all unspent monies will be distributed to the contributors in proportion to their respective contributions during the preceding 12-month period. (Franchise Agreement, Section IX.C.)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 34–43)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Card My Yard may terminate the Marketing Fund at any time. To do so, Card My Yard must provide franchisees with 30 days prior written notice. If Card My Yard terminates the fund, all unspent monies will be distributed to the contributors in proportion to their respective contributions during the preceding 12-month period.
This means that Card My Yard retains control over the Marketing Fund and can discontinue it with advance notice. While the FDD states that unspent funds will be returned to franchisees based on their contributions over the past year, franchisees should be aware that the fund could be terminated, potentially impacting marketing strategies and support.
It is important to note that the Marketing Fund has not yet been established as of the FDD date. Prospective franchisees should inquire about the likelihood of the fund being established, how contributions will be managed, and what factors might lead to its termination. Understanding these aspects can help franchisees better plan their marketing efforts and assess the potential risks and benefits associated with the Marketing Fund.