What is a condition for Card My Yard's consent to a franchise transfer regarding defaults?

According to Card My Yard's 2025 Franchise Disclosure Document, a condition for the franchisor's consent to a franchise transfer is that neither the franchisee nor their affiliates are in default of the Franchise Agreement or any other agreement with Card My Yard or its affiliates. Furthermore, the franchisee and their affiliates must have substantially and timely complied with all the terms and conditions of such agreements during their respective terms. This requirement ensures that the franchisee is in good standing with Card My Yard before transferring the franchise to a new owner.

This condition protects Card My Yard by ensuring that the new franchisee is not inheriting a business with existing financial or contractual issues. It also maintains the integrity of the Card My Yard brand by ensuring that all franchisees meet the franchisor's standards of compliance.

For a prospective franchisee, this means that they must maintain good standing with Card My Yard throughout the term of their agreement if they plan to transfer the franchise in the future. Failure to comply with the terms of the agreement or defaulting on any obligations could prevent the franchisee from being able to transfer their business. This is a fairly standard clause in most franchise agreements.