What conditions regarding default must a Card My Yard franchisee meet to be eligible for renewal?

According to Card My Yard's 2025 Franchise Disclosure Document, to be eligible for renewal, a franchisee must not be in default of the Franchise Agreement. This means the franchisee, nor their Affiliates, can be in default of any agreement with Card My Yard or its Affiliates. Furthermore, the franchisee and their Affiliates must have substantially and timely complied with the terms and conditions of all agreements during their respective terms.

In practical terms, this condition ensures that franchisees seeking renewal have maintained a good standing relationship with Card My Yard throughout the initial term. Any unresolved breaches of contract or failures to meet obligations could disqualify a franchisee from renewing their agreement. This protects the Card My Yard brand and ensures that only franchisees who adhere to the established standards and agreements are permitted to continue operating under the brand name.

Additionally, the franchisee must have timely satisfied all monetary obligations owed to Card My Yard and its Affiliates under the Franchise Agreement or any other agreement. This encompasses all fees, royalties, and other payments due to Card My Yard. Ensuring all financial obligations are met is a standard practice in franchising, as it safeguards the franchisor's revenue stream and maintains the financial health of the franchise system. Prospective franchisees should be aware of all payment schedules and requirements to avoid any potential issues with renewal eligibility. Paying all required fees on time is critical for renewal.