What constitutes abandonment of the Card My Yard business that would lead to termination?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) If you at any time cease to operate or otherwise abandon the Card My Yard business, or lose the right to occupy the Franchise Location (excluding a change of your personal residence to another location within your Protected Territory if your personal residence is your Franchise Location), or otherwise forfeit the right to do or transact business in the jurisdiction where the Card My Yard business is located; provided, that this provision shall not apply upon the occurrence of an event of Force Majeure, if you apply within thirty (30) days after such event for our approval to relocate or reconstruct the Card My Yard business and you diligently pursue such reconstruction or relocation.
Our approval will not be unreasonably withheld but may be conditioned upon the payment of an agreed minimum fee to us during the period in which the Card My Yard business is not in operation;
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a franchisee will be in default of their agreement if they cease to operate or otherwise abandon the Card My Yard business. This also applies if the franchisee loses the right to occupy the franchise location. However, if the franchisee's personal residence is the franchise location, a change of personal residence to another location within their protected territory does not constitute abandonment.
This condition does not apply if an event of Force Majeure occurs. In such a case, the franchisee has 30 days to apply for approval to relocate or reconstruct the Card My Yard business and must diligently pursue such reconstruction or relocation. Card My Yard's approval will not be unreasonably withheld but may be conditioned upon the payment of an agreed minimum fee during the period in which the Card My Yard business is not in operation.
This clause protects Card My Yard from franchisees who might neglect their business or move it without permission, ensuring consistent operation and brand representation. However, it also provides some flexibility for franchisees facing unforeseen circumstances like natural disasters, allowing them to relocate or rebuild their business with the franchisor's approval.