According to Card My Yard's 2025 Franchise Disclosure Document, claims or disputes relating primarily to the Marks, any intellectual property licensed to the franchisee, or any matter governed by the United States Trademark Act of 1946 (Lanham Act) are subject to court proceedings in a court of competent jurisdiction, not arbitration. However, this carve-out applies only to the extent that court action is necessary to protect the Marks, the intellectual property, and any matters governed by the Lanham Act.

This means that Card My Yard franchisees may have to resolve disputes regarding trademarks and intellectual property in court rather than through arbitration, which is a common alternative dispute resolution method. Court proceedings can be more expensive and time-consuming than arbitration, but they may be necessary to protect Card My Yard's intellectual property rights.

It's important to note that only the portion of any claim or dispute identified in this section of the FDD is subject to court action. If a claim involves other issues beyond intellectual property, those other issues may still be subject to mediation or arbitration as outlined in the franchise agreement. A prospective franchisee should carefully consider this clause and consult with legal counsel to understand the implications of potentially litigating intellectual property disputes in court.