Card My Yard

The royalty rate of 25% is more than double the typical 6-10% for this industry. What is the justification for this rate, and are there any circumstances under which it can be reduced or negotiated?

Median gross sales reported in Item 19 ($14,973) are approximately 14-15 times lower than the typical range for this franchise type. Can you explain this discrepancy and clarify whether this represents monthly or annual figures?

The transfer rate of 10.1% is significantly higher than the typical 0-5.18% range. What factors are driving the higher volume of unit transfers, and are there any owner retention concerns?

One litigation case was filed by the franchisor in the past 3 years. What was the nature of this dispute, has it been resolved, and what was the outcome?

Why is the franchise fee of $8,500 substantially lower than the typical $31,125-$50,000 range for this category? Does this lower fee reflect lower support, training, or territorial coverage?

The renewal conditions list contains 9 specified requirements, exceeding the typical 5-8 range. What are these 9 conditions, and how frequently do franchisees fail to meet them at renewal?

The agreement requires a minimum gross sales threshold of $15,000 per 12-month period. How is this enforced, and what happens to franchisees who fall below this threshold?

Can you provide details on the 4 designated supplier categories from which franchisees must purchase products? What is the typical cost impact of mandatory supplier relationships, and are prices competitive with market alternatives?

The non-compete clause restricts activity for 2 years within 25 miles. Has this been enforced post-termination, and are there any geographic or business model exceptions?

Transfer fees are $3,000 (below typical range of $5,250-$19,500). Are there any restrictions on who can assume a franchise, and what is the franchisor's approval process for transfers?

Termination clauses cite 14 non-curable defaults resulting in immediate termination. Can you provide the complete list of these defaults and examples of franchisees terminated for each?

Personal guarantees from all owners and spouses are required. Are there circumstances where this requirement can be waived, and how has this indemnification been applied in past disputes?

Operating hours are controlled by the franchisor. What flexibility exists for franchisees to adjust hours based on local market conditions?

Late payment penalties include a $100 flat fee plus 18% annual interest. Has this penalty structure been applied in practice, and are there any hardship provisions?

Item 19 shows average gross sales of $19,721 compared to median of $14,973. What percentage of units achieve sales above the $15,000 minimum threshold, and how many have been terminated for failing to meet this benchmark?

The system grew from 510 to 545 units over 3 years (2022-2024) while terminating 49 units total. How many of these terminations were franchisor-initiated versus voluntary closures?

What is the typical timeline and process for opening a Card My Yard franchise, and what training and support are provided before and after launch?

Are there any seasonal fluctuations in business performance, and how does the $15,000 minimum sales requirement account for seasonality?

The franchise agreement allows the franchisor to establish maximum, minimum, or other pricing requirements for products sold. What control does this give the franchisor over franchisee pricing and profit margins?

Can you provide references from at least 10 franchisees, including some that have transferred ownership in the past year, to discuss actual sales performance and operational support?