Detailed Estimates of Card My Yard Franchise Costs Based on Item 7 (Estimated Initial Investment) of Card My Yard’s 2020 Franchise Disclosure Document
1. Initial Franchise Fee: $4,000
2. Lease Expenses (3 months): $0 to $500
- These estimates are based on the franchisor’s affiliate’s experience in establishing a Card My Yard business in Texas. Card My Yard businesses are typically located in home offices, and the franchisor anticipates that the premises for all Card My Yard businesses will either be a home office or leased warehouse space.
- These amounts assume that you will operate the business from your home or lease the premises for your Card My Yard business and do not include costs of land acquisition and construction of a building.
- The lease expense estimate and the leasehold improvements estimate are based on operating from your home (low-end estimate) or the cost of leasing a small warehouse space with at least 18 feet of wall space with walls at least 8 feet high (high-end estimate).
- These estimates assume that you will not need to make any leasehold improvements. These costs are the franchisor’s best estimate based on costs that its affiliates have experienced with the company-owned Card My Yard business in Austin, Texas.
- These estimates may vary substantially based on your ability to negotiate with your landlord and your financial strength, as well as on local commercial leasing and labor rates and other local conditions.
3. Furniture and Fixtures: $125 to $500
- This estimate includes all furniture and fixtures (including letter/sign storage racks) to be used in the Card My Yard business. All of these items must meet the franchisor’s standards and specifications.
- The franchisor anticipates that you will operate your Card My Yard business from a home office. The franchisor does not require you to spend any amounts on architects, design plans, or signage to identify your business.
- The franchisor provides you with your initial set of yard letters and signs at no additional cost as those supplies are covered by the initial franchise fee paid to the franchisor upon signing your Franchise Agreement.
- Card My Yard businesses are not currently required to sell any products (only services), so except for the yard signs and letters that are provided by the franchisor at no additional cost beyond the initial franchise fee, you will not need to purchase or maintain any initial inventory of products.
- Card My Yard businesses offer services for the set-up and display of festive yard signs and customized messages designed for temporary display in front of customers’ homes and businesses to commemorate and celebrate events and occasions of all kinds.
- In the future, the franchisor may, at its option, begin requiring franchisees to offer products as designated by it upon 30 days’ written notice.
4. POS/Computer Hardware and Software: $0 to $1,500
- This amount includes the estimated purchase costs of computer hardware (including one laptop computer) and software, if any.
5. Initial Training Costs (per person): $0 to $1,000
- The franchisor provides initial franchise training to your initial Principal Owner(s) and General Manager (if different) at no additional charge. Therefore, these amounts include only your out-of-pocket costs for the training of these people.
- You must pay all expenses you or your employees incur in connection with the initial training program, like travel, lodging, meals, and wages, but all of the franchisor’s initial training programs are available via online courses so you will not incur costs for travel, lodging, meals, or wages if you complete your initial training online.
- The low-end estimate assumes that you already have Internet access and will conduct all initial training via online courses, and the high-end estimate represents the estimated cost for one individual to attend all or a portion of the initial training program in Austin, Texas.
6. Utility/Security Deposits: $0 to $300
- If you lease a space for your Card My Yard business, you may be required to pay security deposits to certain third parties, including your telephone service provider, local utility companies, and various equipment vendors and suppliers. These amounts will vary for each location and will be based in part on the premises, services, and equipment you select.
7. Grand Opening Marketing: $0 to $500
- You must carry out a grand opening promotion for your Card My Yard business in accordance with the franchisor’s standards, but the franchisor’s standards permit you to use all free advertising sources (e.g. social media posts, providing free carding services to potential customers, etc.) to conduct your grand opening advertising. The low-end estimate assumes that you will use only free marketing tools in connection with your grand opening.
- If you elect to hire third-party advertising vendors, you will pay such vendors directly, but all grand opening advertising must be agreed upon by you and the franchisor in advance, and all advertising must conform to the franchisor’s standards and specifications.
- This entire grand opening marketing amount must be spent during the period beginning 10 days before the opening of your Card My Yard business and ending 60 days after such opening date (the “Grand Opening Period”).
8. Business Permits/Licenses (first year): $0 to $500
- Franchisees operating from a home office generally are not required to obtain any business permits or licenses to begin operating a Card My Yard business, so the low-end estimate for this category is $0.
9. Office Equipment/Supplies: $0 to $500
- Franchisees operating from a home office may already have the office equipment and supplies necessary to begin operating a Card My Yard business, so the low-end estimate for this category is $0.
10. Insurance Deposits and Premiums (first 6 months): $100 to $1,500
11. Professional Fees: $0 to $1,500
- The franchisor strongly recommends that you retain an attorney to advise you on this franchise offering. You may also wish to retain an accountant to help you evaluate this franchise offering. If you choose to form an entity to own the franchise, you may incur additional fees.
- The low-end estimate will only apply if you choose not to retain an attorney, accountant, or other professional advisor and you elect not to form a business entity.
12. Additional Funds (3 months): $500 to $1,500
- You will need additional funds during the start-up phase of your business to purchase supplies and pay other expenses. For purposes of this Item 7, the start-up phase is defined as 3 months from the date you open for business. The franchisor does not imply or guarantee that you will “break even” at any particular time, if at all.
- These amounts do not include any estimates for debt service or any salary or draw for you.
- These figures are estimates, and the franchisor cannot assure you that you will not have additional expenses.
- Your actual costs will depend on factors like your management skills, experience, and business acumen. You should base your estimated start-up expenses on the anticipated costs in your market and consider whether you will need additional cash reserves.
- The franchisor relied on the experience of its affiliate’s company-owned Card My Yard business to compile these estimates.
- The franchisor does not offer any financing for your initial franchise fee or any portion of your initial investment. Unless otherwise stated, the amounts described above are not refundable.
13. Total: $4,725 to $13,800