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FDD Talk: Card My Yard Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review)

Published on October 15, 2022 by Franchise Chatter Leave a Comment
in FDD Talk: Miscellaneous Franchises, Franchise Earnings, Low Cost Franchises



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

Section I – Estimated initial investment (franchise costs) for a Card My Yard franchise, based on Item 7 of the company’s 2022 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Card My Yard franchise, based on Items 5 and 6 of the company’s 2022 FDD

America's Most Lucrative Franchises of the Year

Section III – Number of franchised and company-owned Card My Yard outlets at the start of the year and the end of the year for 2019, 2020, and 2021, based on Item 20 of the company’s 2022 FDD

Section IV – News updates on the Card My Yard franchise opportunity

Section V – Presentation and analysis of Card My Yard’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2022 FDD, including information on the:

  • 2021 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 throughout all 12 months of the 2021 calendar year
  • 2021 average, median, highest, and lowest gross sales and number of orders, by quartile, for the 349 franchised Card My Yard businesses that were open and operating throughout all 12 months of the 2021 calendar year

Section VI – Key ratios, comparables, computations, and analyses for the Card My Yard franchise opportunity (exclusive content for Platinum subscribers)

Section I – Card My Yard Franchise Costs

  • Card My Yard franchise costs, based on Item 7 of the company’s 2022 FDD:
  • Initial Franchise Fee:  $8,000
  • Lease Expenses (3 months):  $0 to $500
  • Furniture and Fixtures:  $150 to $500
  • POS/Computer Hardware and Software:  $0 to $1,500
  • Initial Training Costs (per person):  $0 to $1,000
  • Utility/Security Deposits:  $0 to $300
  • Grand Opening Marketing:  $250 to $500
  • Business Permits/Licenses (first year):  $0 to $500
  • Office Equipment/Supplies:  $0 to $500
  • Insurance Deposits and Premiums (first 6 months):  $700 to $1,500
  • Professional Fees:  $0 to $1,500
  • Additional Funds (3 months):  $500 to $1,500
  • Cardference Fee:  $200
  • Total Estimated Card My Yard Franchise Costs:  $9,800 to $18,000

Section II – Card My Yard’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

  • Card My Yard’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2022 FDD:
  • Initial Franchise Fee:  $8,000
  • Royalty Fee:  an amount equal to 25% of your Gross Sales during the first 6 months following the Effective Date of your Franchise Agreement. Thereafter, an amount equal to the greater of: (a) 25% of your Gross Sales, or (b) the following minimum quarterly royalty amounts: (i) $825 per quarter during months 7 through 12 of your agreement, (ii) $1,500 per quarter during months 13 through 24 of your agreement, and (iii) $2,100 per quarter during each 12-month period thereafter.
  • Local Marketing and Cooperatives:  you must give away at least 48 free yard greeting services during each 12-month period under your agreement, and you must also spend at least the following amounts on local advertising: (a) $300 in the first 12 months of your agreement, (ii) $500 in months 13 through 24 of your agreement, and (iii) $800 in each 12-month period thereafter. No advertising cooperatives have been established as of the date of the current Disclosure Document, but if established by Card My Yard for your market, you will be required to contribute to such Cooperative.
  • Marketing Fund:  currently $0. If implemented, an amount equal to the greater of: (a) 0.5% of the Card My Yard business’s monthly Gross Sales, or (b) $25 per month in the first 12 months of your agreement; $40 per month in months 13 through 24; and $65 per month in each 12-month period thereafter.

Section III – Number of Franchised and Company-Owned Card My Yard Outlets

Franchised

2019



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  • 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

2021

  • Outlets at the Start of the Year:  350
  • Outlets at the End of the Year:  470
  • Net Change:  +120

Company-Owned

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

2021

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

Section IV – News Updates on the Card My Yard Franchise

  • Card My Yard Named One of 2022’s Top New and Emerging Franchises by Entrepreneur
  • Franchising Proves Very Fruitful for Card My Yard Sign Business
  • Card My Yard Ranks No. 587 on the 2022 Inc. 5000 Annual List
  • Five Years for Card My Yard – But Don’t Send Just a Card
  • Card My Yard of Bella Vista to Collaborate with Animal Shelter in Honoring Betty White
  • Card My Yard Ranks No. 299 on Entrepreneur’s 2022 Franchise 500 List

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Card My Yard Franchise (Item 19, 2022 FDD)

  • The following tables present historic gross sales and total order information for Card My Yard’s company-owned and franchised locations. As indicated below, the tables in this Item 19 show results achieved during calendar year 2021 (the “Reporting Period”).
  • Card My Yard had a total of 350 franchised Card My Yard Businesses and 2 company-owned Card My Yard Businesses operating as of the beginning of the Reporting Period. All Card My Yard locations that were open and operating throughout all 12 months of the Reporting Period have been included in the tables below, provided that one franchised location ceased operation during 2021 due to the franchisee’s death, so that location was not included in this Item 19.
  • The first table below shows Reporting Period results of the two company-owned Card my Yard businesses.
  • The second and third tables below show the Reporting Period results for the 349 franchised Card My Yard businesses that were in operation throughout the entire Reporting Period.
  • Card My Yard businesses that were open for less than 12 months as of December 31, 2021, have been excluded from the tables below.
  • The information listed below is limited to gross sales and total orders generated during the Reporting Period.
  • The financial information below is from the unaudited books and records of Card My Yard’s affiliate and 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 2021 by Company-Owned Locations

Austin, Texas

  • Total Number of Orders:  892
  • Gross Sales:  $101,041

Leander, Texas

  • Total Number of Orders:  643
  • Gross Sales:  $74,992

Part 2 – Gross Sales Achieved in Calendar Year 2021 by Franchised Units Open for at Least 12 Months as of December 31, 2021

1st Quartile

  • Average Gross Sales:  $15,745
  • Median Gross Sales:  $16,559
  • Minimum Gross Sales:  $2,529
  • Maximum Gross Sales:  $24,326
  • Number of Franchises in Percentile:  88
  • Number of Franchises in Percentile That Attained or Exceeded Average:  49 (55.7%)

2nd Quartile

  • Average Gross Sales:  $31,656
  • Median Gross Sales:  $32,005
  • Minimum Gross Sales:  $24,357
  • Maximum Gross Sales:  $39,206
  • Number of Franchises in Percentile:  87
  • Number of Franchises in Percentile That Attained or Exceeded Average:  45 (51.7%)

3rd Quartile

  • Average Gross Sales:  $49,828
  • Median Gross Sales:  $49,815
  • Minimum Gross Sales:  $39,235
  • Maximum Gross Sales:  $61,453
  • Number of Franchises in Percentile:  87
  • Number of Franchises in Percentile That Attained or Exceeded Average:  43 (49.4%)

4th Quartile

  • Average Gross Sales:  $90,631
  • Median Gross Sales:  $81,117
  • Minimum Gross Sales:  $61,689
  • Maximum Gross Sales:  $160,683
  • Number of Franchises in Percentile:  87
  • Number of Franchises in Percentile That Attained or Exceeded Average:  37 (42.5%)

All Locations

  • Average Gross Sales:  $46,876
  • Median Gross Sales:  $39,206
  • Minimum Gross Sales:  $2,529
  • Maximum Gross Sales:  $160,683
  • Number of Franchises in Percentile:  349
  • Number of Franchises in Percentile That Attained or Exceeded Average:  142 (40.7%)

Part 3 – Total Orders Achieved in Calendar Year 2021 by Franchised Units Open for at Least 12 Months as of December 31, 2021

1st Quartile

  • Average Number of Orders:  149
  • Median Number of Orders:  155
  • Minimum Number of Orders:  24
  • Maximum Number of Orders:  262
  • Number of Franchises in Percentile:  88
  • Number of Franchises in Percentile That Attained or Exceeded Average:  46 (52.3%)

2nd Quartile

  • Average Number of Orders:  288
  • Median Number of Orders:  282
  • Minimum Number of Orders:  139
  • Maximum Number of Orders:  455
  • Number of Franchises in Percentile:  87
  • Number of Franchises in Percentile That Attained or Exceeded Average:  41 (47.1%)

3rd Quartile

  • Average Number of Orders:  450
  • Median Number of Orders:  452
  • Minimum Number of Orders:  274
  • Maximum Number of Orders:  632
  • Number of Franchises in Percentile:  87
  • Number of Franchises in Percentile That Attained or Exceeded Average:  45 (51.7%)

4th Quartile

  • Average Number of Orders:  795
  • Median Number of Orders:  751
  • Minimum Number of Orders:  439
  • Maximum Number of Orders:  1,642
  • Number of Franchises in Percentile:  87
  • Number of Franchises in Percentile That Attained or Exceeded Average:  31 (35.6%)

All Locations

  • Average Number of Orders:  420
  • Median Number of Orders:  357
  • Minimum Number of Orders:  24
  • Maximum Number of Orders:  1,642
  • Number of Franchises in Percentile:  349
  • Number of Franchises in Percentile That Attained or Exceeded Average:  150 (43.0%)
  • 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 locations have 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.

Section VI – Card My Yard Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️



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