What constitutes a new offer subject to Card My Yard's right of first refusal?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
If you or an Owner wishes to transfer any interest in this Agreement, the Card My Yard business, or you pursuant to any bona fide offer received from a third party to purchase such interest, then the proposed seller shall promptly notify us in writing of the offer, and shall provide such information and documentation relating to the offer as we may require.
We will have the right and option, exercisable within thirty (30) days after receipt of such written notification and copies of all required documentation describing the terms of the offer, to send written notice to the seller that we intend to purchase the seller's interest on the terms and conditions offered by the third party.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the right of first refusal is triggered when a franchisee or owner wishes to transfer any interest in the Franchise Agreement, the Card My Yard business itself, or their ownership stake. This is specifically activated when a bona fide offer is received from a third party to purchase such interest.
Upon receiving such an offer, the franchisee must promptly notify Card My Yard in writing. This notification must include all relevant information and documentation pertaining to the offer, as required by Card My Yard. This allows Card My Yard to fully evaluate the proposed transfer and the terms of the offer.
Card My Yard then has the option, within thirty days of receiving the notification and documentation, to exercise its right of first refusal. If Card My Yard chooses to exercise this right, it must provide written notice to the seller indicating its intent to purchase the seller's interest on the same terms and conditions as offered by the third party. This ensures that Card My Yard has the opportunity to maintain control over the franchise and its operations by matching any legitimate offer from an outside party.