FranchiseVerdict
Card My Yard logo
B63/100FDD 2025

Card My Yard — Litigation & Risk

Other · FDD Items 3, 4 & 5

Back to overview

Lower Risk

No litigation cases disclosed in FDD Items 3 and 4.

Source: FDD Items 3–5

FDD Items 3 & 4

Litigation Metrics

Cases disclosed
0
Total from FDD Items 3 and 4
Bankruptcy (Item 4)
—
Franchisor or officer bankruptcy
Overall risk score
63 / 100
FranchiseVerdict composite
Rating
MODERATE
STRONG / MODERATE / CAUTION / AVOID

FDD Items 5, 6 & 17 — what you give up

Contract Risk Indicators

Mandatory arbitration
Required
Disputes resolved outside court — limits your legal options
Jury trial waiver
Waived
You give up the right to a jury trial
Non-compete
2 yrs
Post-termination restriction on similar businesses
Franchisor can compete
Yes
Franchisor can open competing locations in or near your territory
Right of first refusal
Yes
Franchisor can match any purchase offer when you try to sell
Governing law
Utah
State whose law governs disputes — relevant if you're not based there

What drove the 63/100 rating

Risk Score Breakdown

  1. 01MINORPredatory royalty structure: 25% of gross sales is extremely high and leaves minimal margin given avg net income of $18,160 on $19,721 revenue
  2. 02MINORAnemic unit growth of 2.1% YoY suggests market saturation, franchisee struggles, or weak system support in a 545-unit system
  3. 03MINORAvg net income of $18,160 annually is below poverty line; after 25% royalty (~$4,930/year) franchisee nets ~$13,230—inadequate ROI on $10,350-$18,550 investment
  4. 04MINORNo Item 19 financial performance disclosure indicates franchisor unwilling to substantiate earnings claims or hide poor performance data
  5. 05HIGHGoing Concern = False is positive but contradicted by stagnant growth; suggests financial instability or system contraction risk
  6. 06MED5-year term is short; limited payback window given low profitability and high royalty burden

Severity inferred from FDD text — not a regulatory or legal classification

Litigation data from FDD Items 3, 4, and 5. SBA data from public 7(a) FOIA records (FY2020–present). Not legal advice — consult a franchise attorney before signing any franchise agreement.