What articles of the Card My Yard agreement must a franchisee continue to comply with after termination?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) Comply with the restrictions against the disclosure of Confidential Information and against competition contained in Article XI. of this Agreement and cause any other person required to execute similar covenants pursuant to Article XI. to also comply with such covenants.
XIX. POST-TERMINATION
A. Your Obligations Upon Termination. Upon the termination or expiration of this Agreement for any reason, all rights granted to you will terminate, and you must:
(1) Immediately cease to operate the Card My Yard business under this Agreement, and shall not thereafter, directly or indirectly, represent to the public or hold yourself out as one of our present or former franchisees.
(2) Immediately and permanently cease to use, in any manner whatsoever, the Marks and any Confidential Information associated with the System. Without limitation of the foregoing, you must cease to use all signs, advertising materials, displays, stationery, forms and any other items which display the Marks.
(3) Take such action as may be necessary to cancel any assumed name, fictitious name or equivalent registration which contains the mark "Card My Yard" or any other Mark, and furnish us with satisfactory evidence of compliance within five (5) days after termination or expiration of this Agreement.
(5) Promptly pay all sums owing to us and our Affiliates, and all damages, costs and expenses, including reasonable attorneys' fees and costs, incurred by us as a result of any default by you or in connection with obtaining injunctive or other relief for the enforcement of any provisions of this Article XIX., which obligation shall give rise to and remain a lien in favor of us against any and all of your assets, until such obligations are paid in full.
(6) Promptly deliver to us all Manuals, Software Programs, Confidential Information, and other materials related to the operation of the Card My Yard business in your possession or control, and all copies thereof, all of which are acknowledged to be our property, and retain no copy or record of any of the foregoing, except your copy of this Agreement and of any correspondence between you and us and any other documents which you reasonably need for compliance with any provision of law.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Article XIX and Article XI of the franchise agreement outline obligations that continue even after the agreement is terminated. Specifically, Article XIX details the franchisee's responsibilities upon termination or expiration of the agreement.
These post-termination obligations include immediately ceasing operation of the Card My Yard business and refraining from representing oneself as a current or former franchisee. The franchisee must also stop using Card My Yard's trademarks and confidential information. This includes canceling any assumed names containing the Card My Yard mark. The franchisee is also obligated to pay any outstanding amounts owed to Card My Yard and return all manuals, software, and confidential information.
Furthermore, the franchisee must continue to adhere to the restrictions against disclosing confidential information and against competition as outlined in Article XI of the agreement. This ensures that the franchisee does not use proprietary information to compete with Card My Yard after the franchise agreement ends. These continuing obligations are designed to protect Card My Yard's brand, system, and confidential information even after a franchise relationship concludes.