What constitutes misuse of the Marks by a Card My Yard franchisee that could lead to termination?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
gistration which contains the mark "Card My Yard" or any other Mark, and furnish us with satisfactory evidence of compliance within five (5) days after termination or expiration of this Agreement.
- (4) Not use any reproduction, counterfeit, copy or colorable imitation of the Marks which is likely to cause confusion, mistake, or deception, or which is likely to dilute our rights in and to the Marks, nor shall you use any designation of origin or description or representation which falsely suggests or represents an association or connection with us constituting unfair competition.
- (5) Promptly pay all sums owing to us and our Affiliates, and all damages, costs and expenses, including reasonable attorneys' fees and costs, incurred by us as a result of any default by you or in connection with obtaining injunctive or other relief for the enforcement of any provisions of this Article XIX., which obligation shall give rise to and remain a lien in favor of us against any and all of your assets, until such obligations are paid in full.
- (6) Promptly deliver to us all Manuals, Software Programs, Confidential Information, and other materials related to the operation of the Card My Yard business in your possession or control, and all copies thereof, all of which are acknowledged to be our property, and retain no copy or record of any of the foregoing, except your copy of this Agreement and of any correspondence between you and us and any other documents which you reasonably need for compliance with any provision of law. Such shall expressly include all branded materials, signs purchased from us, and all other materials relating to or arising out of the operation of the Card My Yard business, which must be delivered within ten (10) business days to us, at our cost.
- (7) Comply with the restrictions against the disclosure of Confidential Information and against competition contained in Article XI. of this Agreement and cause any other person required to execute similar covenants pursuant to Article XI. to also comply with such covenants.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard FDD, several actions related to the misuse or unauthorized use of the company's Marks can lead to the termination of the franchise agreement. These include using reproductions, counterfeits, copies, or imitations of the Marks that could cause confusion or dilute Card My Yard's rights to those Marks. Additionally, using any designation, description, or representation that falsely suggests an association with Card My Yard, thereby constituting unfair competition, is prohibited.
Furthermore, franchisees must not register any domain name that uses or creates an association with the Marks or the System without express prior written consent from Card My Yard. The domain name must be registered in Card My Yard's name and licensed back to the franchisee. Upon termination or expiration of the agreement, the franchisee must disassociate themselves from the domain name as required by Card My Yard.
After termination of the Franchise Agreement, franchisees must immediately cease using the Marks in any manner and take necessary actions to cancel any assumed name or registration containing the Marks. They must also furnish an itemized list of all advertising and sales promotion materials bearing the Marks and make these materials available for inspection and potential purchase by Card My Yard. Failure to comply with these post-termination obligations related to the Marks can also result in further legal action and penalties.