CARD MY YARD

Item 7 in the 2026 FDD pegs initial investment at $10,350-$18,550, including an $8,500 franchise fee, making it one of the lowest in entertainment services—ideal for bootstrappers operating from a garage. However, the 25% royalty (or the greater of that versus monthly minimums) plus 0.5% brand fund (minimum $100/month after year one) devours margins on disclosed Item 19 figures: average gross revenue of $21,286 and median $16,933 per unit. At 25% royalty alone, that's roughly $5,300 annually from average sales, leaving razor-thin room after other costs in this seasonal, consumer-driven niche.

System health shows turbulence: 490 franchise locations (plus 2 corporate) after dropping 10% from 543 in 2024 to 490 in 2025, with 42 terminations, 42 non-renewals, and 57 transfers signaling franchisee churn since franchising began in 2017. Acquired by FS PEP Holdco, LLC under CMY Holdco, the brand pushes proprietary systems but faces economic sensitivity in luxury yard displays. For investors eyeing quick starts under $20K, the combo of accessible entry and high fees on modest revenues demands scrutiny—potentially viable part-time but risky full-time without volume growth.