Must all accrued monetary obligations be satisfied before a Card My Yard franchisee can transfer their interest?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) All accrued monetary obligations of you and your Affiliates to us and our Affiliates arising under this Agreement or any other agreement,shall have been satisfied in a timely manner, and you shall have satisfied
all trade accounts and other debts of whatever nature or kind in a timely manner;
- (2) You and your Affiliates shall not be in default of this Agreement or any other agreement with us or our Affiliates, and you and they shall have substantially and timely complied with all the terms and conditions of such agreements during their respective terms;
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a franchisee must satisfy all accrued monetary obligations before transferring their interest in the franchise. Specifically, all accrued monetary obligations of the franchisee and their affiliates to Card My Yard and its affiliates arising under the Franchise Agreement or any other agreement must be satisfied in a timely manner. Additionally, all trade accounts and other debts must be satisfied in a timely manner.
This requirement ensures that Card My Yard franchisees are up-to-date on all payments and financial responsibilities before transferring ownership. This protects Card My Yard's financial interests and ensures that the new franchisee is not burdened with the previous owner's debts.
In addition to satisfying monetary obligations, the franchisee and their affiliates must not be in default of the Franchise Agreement or any other agreement with Card My Yard or its affiliates. They must also have substantially and timely complied with all the terms and conditions of such agreements during their respective terms. Meeting these conditions is crucial for a Card My Yard franchisee looking to transfer their business.