In this FDD Talk post, you’ll learn the following:

• Section I – Background information on the Card My Yard franchise opportunity, including relevant news updates

• Section II – Estimated initial investment for a Card My Yard franchise, based on Item 7 of the company’s 2021 FDD

• Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Card My Yard franchise, based on Items 5 and 6 of the company’s 2021 FDD

• Section IV – Number of franchised and company-owned Card My Yard outlets at the start of the year and the end of the year for 2018, 2019, and 2020, based on Item 20 of the company’s 2021 FDD

• Section V – Presentation and analysis of Card My Yard’s financial performance representations, based on Item 19 of the company’s 2021 FDD, including information on the:

• 2019 gross sales and number of orders for each of the two company-owned Card My Yard businesses (Austin and Leander, Texas) that were open and operating as of December 31, 2019 and were in operation for the full 12 months from January 1, 2019 through December 31, 2019

• 2020 gross sales and number of orders for each of the two company-owned Card My Yard businesses (Austin and Leander, Texas) that were open and operating as of December 31, 2020 and were in operation for the full 12 months from January 1, 2020 through December 31, 2020

• 2019 average, median, highest, and lowest gross sales and number of orders for the top 33%, middle 33%, bottom 33%, and all 92 franchised Card My Yard businesses that were open and operating as of December 31, 2019 and were in operation for the full 12 months from January 1, 2019 through December 31, 2019

• 2020 average, median, highest, and lowest gross sales and number of orders for the top 33%, middle 33%, bottom 33%, and all 152 franchised Card My Yard businesses that were open and operating as of December 31, 2020 and were in operation for the full 12 months from January 1, 2020 through December 31, 2020

Section I – Background Information

18 Things You Need to Know About the Card My Yard Franchise

Rapidly Expands and Achieves Momentous Growth in First Quarter of 2021

1.  In mid-April 2021, Card My Yard shared its significant milestones achieved in the first quarter of 2021. After reporting a record-breaking year in 2020 with a 600% increase in sales and 193 newly-opened locations, the brand opened 60 new locations throughout the first quarter of 2021 with 13% of those signings stemming from existing franchisees.

2.  After continuing to navigate through a worldwide pandemic, the brand wrapped up the first quarter of 2021 with a 200% increase in revenue compared to the same period last year. Card My Yard drove substantial development in key markets due to its leveled expansion strategy and was able to gain an astounding amount of momentum throughout the quarter as it saturated existing markets like California, Illinois, and Texas, while also introducing the brand to new targeted locations such as Delaware and Hawaii.

3.  Based on the recent openings in the first quarter, Card My Yard is on track for its projected growth to reach more than 500 franchise locations by the end of the year.

4.  Helping to fuel the brand’s growth, Card My Yard announced last fall a strategic investment by Princeton Equity Group, a top-performing private equity firm with extensive experience in the franchise industry. Working together to expand Card My Yard, Princeton Equity Group will continue to bring an abundance of expertise that they will use to serve the brand’s growing list of franchise partners.

5.  Jessica Stanley, co-founder and chief marketing officer of Card My Yard, said, “We hit the ground running in January and are eager to continue this momentum throughout the rest of 2021. Since inception, our brand has always carried on its mission to spread joy across different communities, and we’re humbled to see that vision resonate with so many. From our industry recognitions, such as ranking No. 399 in Entrepreneur’s 2021 Franchise 500 and No. 21 in Entrepreneur’s 2021 Fastest-Growing Franchises, consistent growth, and building momentum in new markets, we’re positioned for great success and can’t wait to see what the rest of the year has in store.”

6.  Card My Yard also topped off the first quarter by celebrating a major milestone – donating more than $6,000 to charities and non-profit organizations such as Carrying Hope and Leukemia and Lymphoma Society (LLS). As the company prepares for an active second quarter, Card My Yard is projected to sign an additional 50 units in priority markets like California, Florida, and New York.

Doubles Footprint, Adds PE Partner

7.  In early February 2021, Card My Yard reported that it had more than doubled its franchise footprint in 2020, adding 193 new locations as interest in and demand for socially-distanced revelry increased during the pandemic. Jessica Stanley, co-founder and chief marketing officer of Card My Yard, noted, “We have a completely contactless business.” Customers book orders online and are routed to the closest franchisee, who handles delivery, setup, and removal of the signage.

8.  In 2020, the service booked 152,857 orders – nearly 3,000 greetings per week, systemwide – across its 350 locations as customers sent giant birthday, anniversary, graduation, and other special occasion messages to family and friends. Average revenue per location rose alongside that demand, from $18,788 in 2019 to $52,831 for the first nine months of 2020, as reported in Item 19 of Card My Yard’s franchise disclosure document.

9.  Created by Jessica Stanley and Amy Arnold in 2014, Card My Yard is a low-investment franchise (start-up costs are between $7,750 and $16,800, including a $7,000 franchise fee) that can provide supplemental income for owners. That business proposition really resonated with people last year, especially those dealing with job losses as they sought to help support their families. “We saw a huge influx in interest in the opportunity,” said Arnold. Nearly 95 percent of the 200 signed franchise agreements last year were with female entrepreneurs, a stat that Stanley and Arnold said they’re especially proud of.

10.  Card My Yard also drew the interest of Dallas-based Princeton Equity Group, a franchise-focused private equity fund that in October made a strategic investment in the brand. Managing partner Doug Kennealey said his group looks for middle- and lower middle-market brands that are leaders in their space, have high growth potential, exceptional unit economics, and happy franchisees.

11.  “Every one of the boxes is checked with Card My Yard,” said Kennealey, who in 2015 also co-founded MPK Equity Partners and sits on the boards of Urban Air Adventure Park, Sola Salon Studios, Restoration 1, and now Card My Yard. After reaching out directly to Stanley and Arnold, Kennealey continued, he “pretty quickly realized they’re on to something pretty special.”

12.  In addition to the unit economics, he and his partners talked to numerous owners who clearly had enthusiasm and passion for the brand. “We’ve rarely been around franchisees who enjoy what they’re doing as much as Card My Yard,” he said.

13.  Though he didn’t disclose Princeton’s investment level, “we are meaningful investors” who are helping build training and support systems as the brand expands, Kennealey said. “For the last six years, Amy, myself and our husbands have been the only employees,” pointed out Stanley, so now they’re “filling in the gaps.” The corporate team is up to 11 full-time employees, with printing, warehouse, and shipping needs also being addressed.

14.  And as more competitors enter the space, Card My Yard is also scouring social media for those infringing on their federal trademarks, which include the company name plus the phrases “Skip the card, stake the yard,” and “Joy Bringers.”

15.  As for the longevity of the brand, Arnold admitted they’ve worried, “when will people get sick of us?” “But we have a customer base that’s all about celebrating milestones,” she continued. “And there’s always something to be celebrated,” added Stanley.

Company History

16.  Card My Yard was founded in 2014 by Amy Arnold, Jessica Stanley, and their husbands in Austin, Texas. Arnold and Stanley started Card My Yard as a way to spread love and joy in their community. Card My Yard was one of the very first yard greeting card companies. Instead of sending traditional greeting cards, Card My Yard decorates the yards of recipients with heartfelt messages and decorations.

17.  The Card My Yard concept was a hit from the start and demand quickly grew. Arnold and Stanley began franchising Card My Yard and it didn’t take long for the brand to grow to hundreds of franchises across the United States. The Arnolds and Stanleys continue to run Card My Yard as various members of the executive team.

Entrepreneur’s Franchise 500

18.  Card My Yard ranked No. 399 on Entrepreneur’s 2021 Franchise 500 list. The brand also ranked No. 21 on Entrepreneur’s 2021 Fastest-Growing Franchises list.

Section II – Estimated Costs

• Please click here for detailed estimates of Card My Yard franchise costs, based on Item 7 of the company’s 2021 FDD.

Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees

• Please click here for detailed information on Card My Yard’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2021 FDD.

Section IV – Number of Franchised and Company-Owned Outlets

Franchised

2018

• Outlets at the Start of the Year:  65
• Outlets at the End of the Year:  93
• Net Change:  +28

2019

• Outlets at the Start of the Year:  93
• Outlets at the End of the Year:  151
• Net Change:  +58

2020

• Outlets at the Start of the Year:  151
• Outlets at the End of the Year:  350
• Net Change:  +199

Company-Owned

2018

• Outlets at the Start of the Year:  3
• Outlets at the End of the Year:  2
• Net Change:  -1

2019

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

2020

• Outlets at the Start of the Year:  2
• Outlets at the End of the Year:  2
• Net Change:  0

Section V – Financial Performance Representations (Item 19, 2021 FDD) and Analysis

• The following tables present historic gross sales and total order information for Card My Yard’s company-owned and franchised locations. As indicated below, some of the tables in this Item 19 show results achieved during calendar year 2019 (the “2019 Reporting Period”), and other tables show results achieved during calendar year 2020 (the “2020 Reporting Period”).

• Card My Yard had a total of 92 franchised Card My Yard Businesses and 2 company-owned Card My Yard Businesses operating as of the beginning of the 2019 Reporting Period. Card My Yard had a total of 152 franchised Card My Yard Businesses and 2 company-owned Card My Yard Businesses operating as of the beginning of the 2020 Reporting Period. All locations that were open and operating throughout all 12 months of the applicable reporting period have been included in the tables below related to such reporting period.

• The first table below shows the 2019 Reporting Period results of the 2 company-owned Card My Yard businesses. The second table below shows the 2020 Reporting Period results of the 2 company-owned Card My Yard businesses.

• The third table below shows the 2019 Reporting Period results for the 92 franchised Card My Yard businesses that were in operation throughout the entire 2019 Reporting Period. The fourth table below shows the 2020 Reporting Period results for the 152 franchised Card My Yard businesses that were in operation throughout the entire 2020 Reporting Period.

• Due to their limited operating history, Card My Yard businesses that were open for less than 12 months as of December 31, 2019, have been excluded from the 2019 Reporting Period tables, and Card My Yard businesses that were open for less than 12 months as of December 31, 2020, have been excluded from the 2020 Reporting Period tables.

• The financial information below is from the unaudited books and records of Card My Yard’s affiliate and Card My Yard’s franchisees. This information has not been independently audited.

• Some outlets have earned this amount. Your individual results may differ. There is no assurance that you’ll earn as much.

Part 1 – Total Orders and Gross Sales Achieved in Calendar Year 2019 by Company-Owned Locations

Austin, Texas

• Total Number of Orders:  468
• Gross Sales:  $38,492

Leander, Texas

• Total Number of Orders:  226
• Gross Sales:  $21,243

Part 2 – Total Orders and Gross Sales Achieved in Calendar Year 2020 by Company-Owned Locations

Austin, Texas

• Total Number of Orders:  1,245
• Gross Sales:  $124,270

Leander, Texas

• Total Number of Orders:  1,130
• Gross Sales:  $120,800

Part 3 – Gross Sales and Total Orders Achieved in Calendar Year 2019 by Franchised Units Open for at Least 12 Months as of December 31, 2019

Top 33%

• Average Gross Sales:  $36,275
• Median Gross Sales:  $30,699
• Highest Gross Sales:  $85,922
• Lowest Gross Sales:  $22,768
• Average Number of Orders:  415
• Median Number of Orders:  349
• Highest Number of Orders:  970
• Lowest Number of Orders:  233
• Number of Franchises in Percentile:  30
• Number of Franchises in Percentile That Attained or Exceeded Average:  10

Middle 33%

• Average Gross Sales:  $14,585
• Median Gross Sales:  $13,935
• Highest Gross Sales:  $21,623
• Lowest Gross Sales:  $10,074
• Average Number of Orders:  167
• Median Number of Orders:  159
• Highest Number of Orders:  226
• Lowest Number of Orders:  132
• Number of Franchises in Percentile:  31
• Number of Franchises in Percentile That Attained or Exceeded Average:  13

Bottom 33%

• Average Gross Sales:  $6,067
• Median Gross Sales:  $5,892
• Highest Gross Sales:  $9,961
• Lowest Gross Sales:  $837
• Average Number of Orders:  71
• Median Number of Orders:  78
• Highest Number of Orders:  116
• Lowest Number of Orders:  9
• Number of Franchises in Percentile:  31
• Number of Franchises in Percentile That Attained or Exceeded Average:  14

All Applicable Franchised Locations (100%)

• Average Gross Sales:  $18,788
• Median Gross Sales:  $13,877
• Average Number of Orders:  216
• Median Number of Orders:  159
• Number of Franchises:  92
• Number of Franchises That Attained or Exceeded Average:  33

Part 4 – Gross Sales and Total Orders Achieved in Calendar Year 2020 by Franchised Units Open for at Least 12 Months as of December 31, 2020

Top 33%

• Average Gross Sales:  $114,832
• Median Gross Sales:  $103,770
• Highest Gross Sales:  $224,134
• Lowest Gross Sales:  $78,506
• Average Number of Orders:  1,180
• Median Number of Orders:  1,079
• Highest Number of Orders:  2,417
• Lowest Number of Orders:  892
• Number of Franchises in Percentile:  50
• Number of Franchises in Percentile That Attained or Exceeded Average:  20

Middle 33%

• Average Gross Sales:  $65,007
• Median Gross Sales:  $68,056
• Highest Gross Sales:  $78,215
• Lowest Gross Sales:  $51,519
• Average Number of Orders:  680
• Median Number of Orders:  678
• Highest Number of Orders:  909
• Lowest Number of Orders:  617
• Number of Franchises in Percentile:  51
• Number of Franchises in Percentile That Attained or Exceeded Average:  29

Bottom 33%

• Average Gross Sales:  $35,891
• Median Gross Sales:  $40,601
• Highest Gross Sales:  $51,121
• Lowest Gross Sales:  $5,228
• Average Number of Orders:  388
• Median Number of Orders:  439
• Highest Number of Orders:  653
• Lowest Number of Orders:  74
• Number of Franchises in Percentile:  51
• Number of Franchises in Percentile That Attained or Exceeded Average:  32

All Applicable Franchised Locations (100%)

• Average Gross Sales:  $71,628
• Median Gross Sales:  $67,568
• Average Number of Orders:  747
• Median Number of Orders:  678
• Number of Franchises:  152
• Number of Franchises That Attained or Exceeded Average:  63

• Gross Sales, as used in this Item 19, means the total selling price of all services and products and all income of every other kind and nature related to the Card My Yard business, whether for cash or credit and regardless of collection in the case of credit.

• Each of the Card My Yard locations included in the tables above has an established operation history (at least 12 months), and the company-owned location in Austin, Texas has been open for more than 4 years.

• The figures shown in the tables above represent gross sales without deduction for any operating expenses. You will have many expenses, such as wages, costs of goods sold, transportation costs, insurance, local marketing, royalty fees, marketing fees, utilities, and various other expenses. These operating expenses must be deducted from the gross sales figures to obtain your net income or profit. You should conduct an independent investigation of the costs and expenses you will incur in operating your Card My Yard business.

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