What constitutes a non-curable default under the lease for a Card My Yard franchise?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) If we cure Tenant's default, or if we notify Landlord that the Franchise Agreement has been terminated (which termination shall constitute a non-curable default pursuant to the Lease upon Landlord's receipt of our notice thereof), Landlord agrees, upon our written request, to assign to us any and all rights that Landlord may have under the Lease to remove and evict Tenant from the Premises and shall cooperate with us in order to pursue such action to a conclusion.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard Franchise Disclosure Document, a non-curable default under the lease occurs when the Franchise Agreement is terminated. If Card My Yard, as the franchisor, notifies the landlord of the termination of the Franchise Agreement, this termination constitutes a non-curable default under the lease. Upon receiving this notice, the landlord agrees to assign any rights they may have under the lease to Card My Yard, allowing Card My Yard to remove and evict the tenant (franchisee) from the premises.
This provision protects Card My Yard by allowing them to control the location and prevent a terminated franchisee from continuing to operate at the same site. It also gives Card My Yard the option to take over the lease and continue operating a Card My Yard business at that location, either temporarily or permanently.
Card My Yard has the option to cure the franchisee's default within fifteen days of receiving notice from the landlord. If Card My Yard cures the default or notifies the landlord of the franchise agreement's termination, they have the option to perform the lease terms on behalf of the tenant for up to six months or assume the lease for the remainder of the term, including renewal options. This provides Card My Yard with flexibility in managing the location after a franchisee's default or termination.