What is a condition for Card My Yard's consent to a franchise transfer regarding monetary obligations?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) All accrued monetary obligations of you and your Affiliates to us and our Affiliates arising under this Agreement or any other agreement,shall have been satisfied in a timely manner, and you shall have satisfied
all trade accounts and other debts of whatever nature or kind in a timely manner;
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a key condition for the franchisor's consent to a franchise transfer involves the franchisee's monetary obligations. Specifically, all accrued monetary obligations of the franchisee and their affiliates to Card My Yard and its affiliates must be satisfied in a timely manner. This requirement extends to obligations arising under the Franchise Agreement itself, as well as any other agreements in place.
In practical terms, this means that a franchisee looking to sell their Card My Yard business must ensure that all outstanding payments, fees, or debts owed to the franchisor and its related entities are fully paid up before the transfer can proceed. This includes not only franchise fees and royalties but also any other financial commitments stemming from any agreement with Card My Yard.
Furthermore, the franchisee must also have satisfied all trade accounts and other debts of whatever nature or kind in a timely manner. This indicates that the franchisee needs to be current on payments to suppliers and other creditors as well.
This condition protects Card My Yard by ensuring that the franchise system remains financially sound and that new franchisees are not burdened with the financial liabilities of the previous owner. It also aligns with standard franchising practices, where franchisors typically require franchisees to be in good financial standing before approving a transfer.