When does Card My Yard collect transfer and termination fees?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
All Transferrees acquiring an existing Card My Yard business from a franchisee must sign our then-current Franchise Agreement within thirty (30) days of approval of the transfer by us, and payment of applicable transfer fee.
If you seek to transfer or resell your business, failure to follow this process will incur the then-current termination fees and result in termination of your franchise;
- (9) You must pay us a transfer fee in an amount equal to the greater of: (a) $3,000, or (b) 5% of the applicable sale/transfer price (whether for cash or other consideration);
Upon any unauthorized closure of the Card My Yard business by you or any termination of this Agreement in connection with a breach by you, you will be required to promptly pay us liquidated damages in an amount equal to the greater of (a) $6,600 or (b) the total royalties paid by you under this Agreement during the previous 12 months multiplied by two (or if your Card My Yard business has not been open for at least 12 months then your liquidated damages amount will be $6,600).
An amount equal to $5,000 per occurrence will be owed for each instance when we document your intentional non-reporting or under-reporting of revenues that you realize and receive from your Card My Yard business. Upon such an occurrence, in addition to such fees, we will have a right to terminate the franchise without a right to cure.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, transfer fees are collected when a franchisee transfers their business to a new owner. Specifically, the new franchisee must sign the current Franchise Agreement and pay the transfer fee within 30 days of the transfer's approval. The transfer fee is the greater of $3,000 or 5% of the sale/transfer price. Failure to follow the transfer process will result in termination fees.
Termination fees, also referred to as liquidated damages, are collected upon any unauthorized closure of the Card My Yard business or any termination of the Franchise Agreement due to a franchisee breach. The liquidated damages will be the greater of $6,600 or two times the total royalties paid by the franchisee during the previous 12 months. If the business has not been open for at least 12 months, the liquidated damages will be $6,600.
Additionally, Card My Yard may charge a $5,000 fee per occurrence if a franchisee intentionally does not report or under-reports revenue. In this instance, Card My Yard has the right to terminate the franchise agreement without allowing the franchisee an opportunity to correct the issue. These fees are in addition to any other remedies Card My Yard may pursue under the Franchise Agreement.