Are you thinking about entering the special-occasion industry in a niche area like the company Card My Yard? It’s an extremely niche business with few competitors, making an entrepreneur’s life easier than other businesses. But it also comes with its risks.
That’s why you might not be sure whether owning a Card My Yard franchise is a good idea or not. There are many considerations to make, like the costs, requirements, profit & revenue, and many others.
In this article, we will talk about Card My Yard’s franchise system and show whether it’s worth owning it or not.
About Card My Yard and Card My Yard History
Card My Yard is a personalized special occasion yard sign rental company founded in 2014 in Texas.
They give the platform for the customers to send customized greeting messages no matter the occasion and be a creative celebration company.
They do not offer customized greeting cards, but they offer yard sign rentals that you can customize.
The company started to franchise in 2017, and it now operates in around 30 states with more than 500 stores.
They grew quickly from the year they started to franchise, which shows there is good potential. The success generally comes from the fact that starting a Card My Yard franchise is quite low-cost.
Franchise Model Table
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | $8,725-$18,800 |
| Franchise | YES |
| Franchising Since | 2017 |
| Franchise-Fee | $8,000 |
| Royalty-Fee | 25% |
| Liquidity | N/A |
| Estimated Outlets | 503 |
How Much Does It Cost To Open A Card My Yard Franchise?
Opening a Card My Yard franchise is extremely low cost. The total expected initial investment could vary between $8,725 and $18,800. This includes costs like the franchise fee, equipment, furniture, deposits, training, and so on. It depends on the location and the chosen operation of the store.
Franchise Requirements
There are no hard requirements to be a Card My Yard franchise. All you need to make sure to have is the cash to cover all the expected costs to get the store operating. You also need to have some that will cover your first couple of months of operations.
Card My Yard doesn’t directly make any professional requirement obligatory. You only need to make sure that you have everything you need before applying to succeed. You don’t need experience in the industry.
Profit & Revenue Of Card My Yard Franchise
Because Card My Yard is not a public company, they don’t always share the company financials with the public. The latest report is for the 2020 fiscal year.
Their gross revenue was $1.5 million, and the gross profit was $1 million. The company made a net loss of $68,000 in 2020.
Overall Sales
For franchise-owned stores, average gross overall annual sales were about $46,876. This number represents about 350 stores.
Among these 350 stores, over 40% hit or exceeded the average gross sales. The highest end made $160,683, and the lowest is $2,529 annually.
How Much Does A Card My Yard Franchise Owner Earn?
Card My Yard doesn’t directly talk about the net average profits of the franchised stores. So, we don’t have any official information on the profits.
Our estimations show us that if the profit margin is at 30% per store on average, then the estimated annual profit is about $14,062. This also becomes the franchise owner’s salary.
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 46876.00 |
| Rent | 8.75% | (4101.65) |
| Insurance | 4.38% | (2050.82) |
| Salaries | 17.50% | (8203.30) |
| Franchise Royalty Fees | 4.38% | (2050.82) |
| Utilities | 1.75% | (820.33) |
| Cost of Goods Sold (COGS) | 21.88% | (10254.13) |
| Labor (Variable) | 11.37% | (5332.14) |
| Total (Expenses) | 70.00% | (32813.20) |
| Net Profit | 30.00% | 14062.80 |
Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
Payback Period Of Card My Yard Franchise
With an investment of $18,800 and a yearly profit of $14,062, we can calculate the payback period of the Card My Yard franchise.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Investment / Yearly Profit = $18,800/ $14,062= 1.33 years
Based on these figures, it will take approximately 1-1.5 years to pay back the initial investment for Card My Yard. This time period could be longer or shorter depending on your sales, revenue, and profit figures.
Failure Rate Of Card My Yard
Franchised Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 93 | 151 | +58 |
| 2020 | 151 | 350 | +199 |
| 2021 | 350 | 470 | +120 |
For the Franchised outlets:
- In 2019, the growth rate was (58)/93×100≈62.36%
- In 2020, the growth rate was (199)/151×100≈131.78%
- In 2021, the growth rate was (120)/350×100≈34.28%
Company-Owned Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 2 | 2 | 0 |
| 2020 | 2 | 2 | 0 |
| 2021 | 2 | 2 | 0 |
For the Company-Owned outlets:
- In 2019, the failure rate was (0)/2×100≈0.00%
- In 2020, the failure rate was (0)/2×100≈0.00%
- In 2021, the failure rate was (0)/2×100≈0.00%
Total Outlets:
| Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|
| 2019 | 95 | 153 | +58 |
| 2020 | 153 | 352 | +199 |
| 2021 | 352 | 472 | +120 |
For Total outlets:
- In 2019, the growth rate was (58)/95×100≈61.05%
- In 2020, the growth rate was (199)/153×100≈130.06%
- In 2021, the growth rate was (120)/352×100≈34.09%
According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.
We can see that the franchised outlets for Card My Yard grew from 2019 to 2021, showing a growth rate between 62.36% and 34.28%. On the other hand, for company-owned outlets, the failure rate of Card My Yard was 0.00% for the same period.
Overall, when we combine the data of franchise and company-owned outlets, we can see that the Card My Yard franchise has expanded in the years 2019-2021 showing a total growth rate between 61.05% and 34.09%.
Training and Support
The franchisor offers a decent amount of training to get you started and teach you about the business and how to operate their brand. They have both on-the-job and classroom training that focuses on different things.
On-the-job training is for 14 hours in total and teaches you business operations. Classroom training is for 7 hours altogether and focuses on more tactical things about being a business owner.
They offer ongoing support, including newsletter, grand opening help, proprietary software, operations support, and so on. This includes marketing support as well like SEO, social media, and many others.
Terms of Agreement and Renewal
The initial franchise agreement you are going to sign will be for five years. This will give you the right to operate a Card My Yard franchise for five years.
At the end of the five years, a renewal is possible if both sides are in good standing. The renewal fee and the term of the renewal will depend on your initial agreement.
Obligations and Restrictions
You are obligated to offer products and services that Card My Yard asks you to, and you can’t offer anything without their prior approval. You can run the business full-time or part-time. It depends on you, and you are not obligated to do it one way or another.
However, absentee ownership is not allowed, and you must run the business either full-time or part-time.
Entrepreneurs considering a venture into the decor services franchise sector might explore options such as Sign Gypsies and Glass Doctor franchises.
Card My Yard Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Sign Dreamers | $495 | N/A | $3,200 |
| Sign Gypsies | $3,500 | N/A | $3,550-$10,000 |
| Card My Yard | $8,000 | 25% | $8,725-$18,800 |
Conclusion
Card My Yard is a unique business model in a very niche industry without a lot of competition. It gives a great edge to entrepreneurs looking to own a business and makes it easy to succeed.
However, the company isn’t making a lot of money, so you must be careful when making the decision to open one of its franchises.
Ideally, you should have enough cash coverage to cover you to grow your business until you achieve net profit, which might take some time.
FAQs
Is Card My Yard a franchise?
Yes, Card My Yard is a franchise, and they’ve been offering opportunities since 2017.
What is the Card My Yard franchise fee?
The franchise fee is a fixed $8,000 that you pay in cash when you sign the agreement.
What requirements do I need to have to be a Card My Yard franchisee?
There are no official requirements, but if you want to succeed, you need to have enough financial capital to open the store and survive in the first couple of months in cash.
Who owns Card My Yard?
The founder and owner of Card My Yard is Jessica Stanley & Amy Arnold.
Where is Card My Yard headquartered?
The headquarters of Card My Yard is located in Austin, Texas, United States.
How many locations does Card My Yard have?
Card My Yard is the original franchise yard greeting company operating in 500 locations across the country.