What agreement must all current and future owners of a Card My Yard franchise sign?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement requires you to designate a "Principal Owner." Your Principal Owner is the main individual responsible for your business. Your Principal Owner must meet our qualifications and must be approved by us. Your current and future owners, including your Principal Owner, must sign a Guaranty and Assumption Agreement ("Guaranty"), guaranteeing your performance and binding themselves individually to certain provisions of the Franchise Agreement, including the covenants against competition and disclosure of confidential information, restrictions on transfer and dispute resolution procedures.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–13)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, all current and future owners of a Card My Yard franchise, including the Principal Owner, must sign a Guaranty and Assumption Agreement, referred to as the "Guaranty".
The Guaranty ensures that the owners are individually bound to certain provisions of the Franchise Agreement. This means that the owners are personally guaranteeing the performance of the franchise and are legally responsible for upholding the terms of the agreement.
The specific provisions covered by the Guaranty include covenants against competition and the disclosure of confidential information, restrictions on transfer of the franchise, and adherence to dispute resolution procedures. This is a common practice in franchising, as it provides the franchisor with additional security and ensures that the owners are fully committed to the Card My Yard system and brand standards.