What constitutes a 'Force Majeure' event that might affect a Card My Yard franchise?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
"Force Majeure" means acts of God, strikes, lockouts or other industrial disturbances, war, acts of terrorism, riot, epidemic, fire or other catastrophe or other forces beyond a party's control.
If you are unable to continue the operation of the Card My Yard business at the Franchise Location because of the occurrence of an event of Force Majeure or for other reasons not constituting an event of default under this Agreement, you may request our consent to relocate the Card My Yard business to another location in the Protected Area.
Such request must be submitted to us as soon as possible (but in no event longer than 10 days) after the date you discover you will be unable to continue the operation of the Card My Yard business at the Franchise Location.
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 'Force Majeure' event includes circumstances beyond a party's control. Specifically, this covers events such as acts of God, strikes, lockouts or other industrial disturbances, war, acts of terrorism, riot, epidemic, fire, or other catastrophes.
For a Card My Yard franchisee, the occurrence of a Force Majeure event can have significant implications. If such an event prevents the franchisee from operating at their designated Franchise Location, the franchisee has the option to request permission from Card My Yard to relocate the business to another location within their protected area. This request must be submitted promptly, within 10 days of discovering the inability to continue operations at the original location.
It's important to note that while Card My Yard will not unreasonably withhold approval for relocation under Force Majeure circumstances, they may condition their approval on the franchisee paying an agreed minimum fee during the period the business is not operational. Additionally, if a Force Majeure event occurs, the franchisee has 30 days to apply for approval to relocate or reconstruct the Card My Yard business to avoid losing their right to operate the franchise.
This clause provides some flexibility for Card My Yard franchisees facing unforeseen and uncontrollable events, but it also highlights the importance of timely communication with the franchisor and the potential for incurring additional costs during the disruption. Franchisees should carefully consider these factors and maintain open communication with Card My Yard to navigate any Force Majeure situations effectively.