Card My Yard Franchise Provides Additional Income (2024)
Card My Yard provides yard greeting services founded by Amy Arnold, Josh Arnold, Jessica Stanley, and James Stanley. Amy and Jessica, both moms of three, met at a women’s Bible Study and quickly became friends. In October 2014, the two moms along with their husbands founded Card My Yard with the goal to serve families and make a positive impact in the community as small business owners. Now 450+ franchise locations are in operation across the United States.
How is Card My Yard Franchise Positioned in the Special Services Industry?
Card My Yard provides a service that is unique in the industry and does not have much competition. This has definitely contributed to their extensive network.
How Much is a Card My Yard Franchise?
The initial Card My Yard Franchise Fee is $8,000. You have to pay this upfront fee when opening a Card My Yard franchise.
Card My Yard Franchise Cost
The estimated total investment necessary to begin the operation of a Card My Yard Franchise ranges from $9,800 to $18,000. The following costs are part of the upfront costs included in the initial investment for a Card My Yard. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Card My Yard franchise in 2022.
| Type Of Expenditure | Amount (Low) | Amount (High) | To Whom Payment Is To Be Made |
|---|---|---|---|
| Initial Franchise Fee | $8,000 | $8,000 | Us |
| Lease Expenses (three months) | $0 | $500 | Landlord |
| Furniture and Fixtures | $150 | $500 | Third party-suppliers |
| POS/Computer Hardware and Software | $0 | $1,500 | Approved Suppliers |
| Initial Training Costs (per person) | $0 | $1,000 | Costs of travel, lodging and meals |
| Utility/Security Deposits | $0 | $300 | Third party-suppliers |
| Grand Opening Marketing | $250 | $500 | Advertisers, free yards and other vendors |
| Business Permits/Licenses (first year) | $0 | $500 | Applicable government Authorities |
| Office Equipment/Supplies | $0 | $500 | Approved Suppliers |
| Insurance Deposits and Premiums (first six months) | $700 | $1,500 | Insurance carriers |
| Professional fees | $0 | $1,500 | Attorneys, accountants or other professionals |
| Additional Funds (three months) | $500 | $1,500 | Third parties |
| Cardference Fee | $200 | $200 | Us |
| TOTAL | $9,800 | $18,000 |
Card My Yard Franchise Requirements
Owning a Card My Yard Franchise Requires Ongoing Fees
Royalty: 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: 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.
Marketing: Currently $0. If implemented, an amount equal to the greater of: (a) one-half of one percent (0.5%) of the Card My Yard business’ monthly Gross Sales or (b) $25 per month in the first 12 months of your agreement; $40 per month in.
How much do Card My Yard franchise owners make?
GROSS SALES ACHIEVED IN CALENDAR YEAR 2021 BY FRANCHISED UNITS OPEN FOR AT LEAST 12 MONTHS AS OF 12/31/2021
| Quartile by Gross Sales | Average | Median | Minimum | Maximum | Number of Franchises in Percentile | Number of Franchises in Percentile that Attained or Exceeded Average |
|---|---|---|---|---|---|---|
| 1st Quartile | $15,745 | $16,559 | $2,529 | $24,326 | 88 | 49 (55.7%) |
| 2nd Quartile | $31,656 | $32,005 | $24,357 | $39,206 | 87 | 45 (51.7%) |
| 3rd Quartile | $49,828 | $49,815 | $39,235 | $61,453 | 87 | 43 (49.4%) |
| 4th Quartile | $90,631 | $81,117 | $61,689 | $160,683 | 87 | 37 (42.5%) |
| All Locations | $46,876 | $39,206 | $2,529 | $160,683 | 349 | 142 (40.7%) |
2021 Card My Yard Median Franchise Sales: $39,206
| Initial investment (midpoint) | %Profit margin of average franchise sales | Estimated Profits | Time to recoup investment |
|---|---|---|---|
| $13,900 | 30% | $11,760 | 2.25 years |
| $13,900 | 40% | $15,680 | 2 years |
| $13,900 | 50% | $19,510 | 1.75 years |
Based on the median sales provided by Card My Yard’s franchise locations, at an average of a 40% profit margin it will take around 2 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 40% profit margin which would elongate getting a return on your investment.
Is the Card My Yard Franchise Profit Worth the Franchise Cost?
Under $1 Million Net Sales
- Estimated Selling Price = Net Sales – 0.52
$1 Million – $5 Million Net Sales
- Estimated Selling Price = Net Sales – 0.30
Over $5 Million Net Sales
- Estimated Selling Price = Net Sales – 0.49
When you go to sell a Card My Yard franchise based on the median multiple of .52 and net sales averaging between 2020 and 2010 of $39,206, it would sell for $20,378. This is higher than the midpoint investment of $13,900. Therefore, there is potential to make a profit but substantial earnings will require opening multiple such franchises.
Card My Yard (Franchisor) Income Statement Key Insights:
Statement of Income and Member’s Equity
For the period October 1, 2020 through December 31, 2020
For the period October 1, 2020 through December 31, 2020
| Contract revenues | |
| Royalties | $916,042 |
| Franchise fees | 133,700 |
| Boutique sales | 459,504 |
| Gross revenue | 1,509,246 |
| Cost of sales | 457,760 |
| Gross profit | 1,051,486 |
| Operating expenses | |
| Advertising and promotion | 2,487 |
| Amortization | 364,996 |
| Auto expenses | 988 |
| Bank fees and credit card processing fees | 136,150 |
| Charitable contributions | 16,000 |
| Computer and software expenses | 37,585 |
| Conferences | 2,995 |
| Depreciation | 1,304 |
| Employee benefits | 16,146 |
| Insurance | 14,550 |
| Management fees | 75,000 |
| Meals and entertainment | 1,494 |
| Office expenses | 57,200 |
| Payroll expenses | 240,335 |
| Professional fees | 74,839 |
| Rent | 9,266 |
| Repairs and maintenance | 3,517 |
| Retirement contribution expense | 29,250 |
| State registration fees | 5,875 |
| Taxes | 23,311 |
| Telephone | ,1604 |
| Training | 3,525 |
| Utilities | 1,684 |
| Total operating expenses | 1,120,101 |
| Net loss | (68,615) |
Card My Yard is a loss-making business for the franchisor with a loss of $68,615 in 2021.
How many Card My Yard units have opened and closed?
System-wide Outlet Summary For years 2019 to 2021
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 | 93 | 151 | +58 |
| 2020 | 151 | 350 | +199 | |
| 2021 | 350 | 470 | +120 | |
| Company-Owned | 2019 | 2 | 2 | 0 |
| 2020 | 2 | 2 | 0 | |
| 2021 | 2 | 2 | 0 | |
| Total Outlets | 2019 | 95 | 153 | +58 |
| 2020 | 153 | 352 | +199 | |
| 2021 | 352 | 472 | +120 |
Over the last three years, the company has massively expanded. Franchised units have increased at an average rate of 125 per year i.e. more than two every week. This is a sign that the business is doing well and depending on the ground figures might reaffirm having multiple franchises to make a substantial profit.
Conclusion
Card My Yard offers a unique opportunity for prospective franchise owners to enter an industry that does not have a lot of competition. The reason for this, however, might be due to limited demand. Card My Yard might be a strong investment but the franchisor still have to prove their financials as they were making a loss in 2021.
Think you are interested in owning a Card My Yard franchise or another franchise in the Special Services industry? Check out our listings page on the Vetted Biz website for much more information about franchise opportunities.