Who is the Card My Yard agreement binding upon?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
These covenants shall survive the expiration, termination or transfer of this Agreement or any interest herein and shall be perpetually binding upon you and each of the Owners.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, certain covenants within the agreement are perpetually binding upon the franchisee and each of their Owners. These covenants specifically relate to the use and confidentiality of Card My Yard's proprietary information.
This means that even after the franchise agreement expires, terminates, or is transferred, the franchisee and their Owners remain obligated to protect Card My Yard's confidential information and trade secrets. This obligation extends indefinitely, ensuring that the franchisee and their Owners cannot use the knowledge gained during the franchise term to compete against Card My Yard or disclose sensitive information to others.
For a prospective Card My Yard franchisee, this highlights the importance of understanding and adhering to the confidentiality and non-competition terms of the franchise agreement. It also emphasizes the need to carefully consider who is designated as an "Owner," as they too will be subject to these perpetual obligations. Franchisees should seek legal counsel to fully understand the scope and implications of these covenants before entering into the agreement.