What is the agreement regarding actions that could harm the goodwill associated with the Card My Yard system?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Directly or indirectly divert, or attemptto divert, any business or customer of Card My Yard businesses to any competitor, or do or perform any other act injurious or prejudicial to the goodwill associated with the Marks and the System.
(6) If you or any of your Owners is convicted of, or has entered a plea of guilty or nolo contendere to, a felony, a crime involving moral turpitude, or any other crime, offense or inappropriate action that we believe is reasonably likely to have an adverse effect on the System, the Marks, the goodwill associated therewith, or our interests therein;
(a) You and your Owners acknowledge that we will have the right, in our sole discretion, to reduce the scope of any covenant set forth in this Section XI.C. without your or their consent, effective immediately upon notice to you; and you and your Owners agree to promptly comply with any covenant as modified.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees and their owners are prohibited from taking actions that could harm the goodwill associated with the Card My Yard system. During the term of the agreement, franchisees and owners cannot divert business or customers to competitors or perform any act that is injurious or prejudicial to the goodwill associated with the Card My Yard marks and system.
This restriction extends beyond the termination or transfer of the franchise agreement. For a period of two years after the agreement ends or an individual ceases to be an owner, they are still prohibited from diverting business or customers to competitors or taking actions that harm the goodwill of the Card My Yard system. This post-term restriction applies to operations at the franchise location, within the protected area, or within a 25-mile radius of the franchise location or any existing or under-construction Card My Yard business.
The agreement also states that if a franchisee or any of their owners are convicted of a felony, a crime involving moral turpitude, or any other crime, offense, or inappropriate action that Card My Yard believes is reasonably likely to have an adverse effect on the system, the marks, the goodwill associated therewith, or their interests therein, it would be a breach of the agreement. Card My Yard also has the right to reduce the scope of any covenant without the franchisee's consent, effective immediately upon notice.