What is a condition that Card My Yard may require for consent to transfer an interest in the Card My Yard business?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
If you wish to transfer all or part of your interest in the Card My Yard business or this Agreement, or if you or an Owner wishes to transfer any ownership interest in you, the transferor shall apply to us for our consent. We will not unreasonably withhold our consent but may require any or all of the following as conditions of our consent:
- (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;
- (2) You and your Affiliates shall not be in default of this Agreement or any other agreement with us or our Affiliates, and you and they shall have substantially and timely complied with all the terms and conditions of such agreements during their respective terms;
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer all or part of their interest in the Card My Yard business, they must apply to Card My Yard for consent, which Card My Yard will not unreasonably withhold. However, Card My Yard may require certain conditions for consent.
One condition that Card My Yard may require is that all accrued monetary obligations of the franchisee and their affiliates to Card My Yard and its affiliates arising under the Franchise Agreement or any other agreement must have been satisfied in a timely manner. Additionally, the franchisee must have satisfied all trade accounts and other debts of whatever nature or kind in a timely manner.
Another condition is that the franchisee and their affiliates must not be in default of the Franchise Agreement or any other agreement with Card My Yard or its affiliates. Furthermore, they must have substantially and timely complied with all the terms and conditions of such agreements during their respective terms. These conditions ensure that the Card My Yard business being transferred is in good financial and operational standing, protecting the brand and the interests of the franchisor and other franchisees.