How does Card My Yard use the cash contributed by franchisees to the national branding funds?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
Restricted cash balances relate to cash franchisees contribute to the Company's national branding funds. Cash contributed by franchisees to the national branding funds are to be used in accordance with the franchise agreements with a focus on marketing and advertising.
You agree that the Fund may be used to pay the costs of preparing and producing video, audio and written advertising
materials; administering national, regional and multiregional advertising programs, including, without limitation, purchasing direct mail and other media advertising and employing advertising, promotion and marketing agencies; the cost of developing and maintaining an internet website; developing and maintaining gift card, membership and other customer loyalty programs; and supporting public relations, market research and other advertising, promotion and marketing activities.
Although we will endeavor to utilize the Fund to develop advertising and marketing materials and programs that will benefit all Card My Yard businesses, we undertake no obligation to ensure that expenditures by the Fund in or affecting any geographic area are proportionate or equivalent to the contributions to the Fund by Card My Yard businesses operating in that geographic area or that any Card My Yard business will benefit directly or in proportion to its contribution to the Fund from the development of advertising and marketing materials or the placement of advertising.
- (4) We reserve the right, upon thirty (30) days' prior written notice to you, to defer, reduce or suspend contributions to (and, if suspended, deferred or reduced, to reinstate such contributions) and to suspend operations of, the Fund for one or more periods of any length and to terminate (and, if terminated, to reinstate) the Fund.
If the Fund is terminated, all unspent monies on the date of termination will be distributed to the contributors to the Fund in proportion to their respective contributions to the Fund during the preceding twelve (12) month period.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisee contributions to the national branding funds are primarily used for marketing and advertising initiatives. These funds are intended to maximize recognition of the Card My Yard brand and drive patronage to individual Card My Yard businesses.
Specifically, the funds may cover the costs of creating video, audio, and written advertising materials, as well as administering national, regional, and multi-regional advertising programs. This includes purchasing direct mail and other media advertising, and employing advertising, promotion, and marketing agencies. The funds can also be used for developing and maintaining the Card My Yard website, customer loyalty programs like gift cards and memberships, and supporting public relations and market research.
Card My Yard maintains sole discretion over the creative concepts, materials, geographic placement, and market allocation of these advertising programs. While Card My Yard aims to develop materials and programs that benefit all franchisees, there's no guarantee that the expenditure in any specific area will be proportional to the contributions from Card My Yard businesses in that area. Card My Yard also reserves the right to modify or terminate the fund with thirty days written notice. If the fund is terminated, the remaining money will be distributed to the contributors based on their contributions over the previous twelve months.