What is the duration of the non-compete agreement following the termination, expiration, or transfer of a Card My Yard Franchise Agreement?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Directly or indirectly divert, or attempt to divert any business opportunity or customer of Card My Yard businesses to any competitor; and
- b. Directly or indirectly, for yourself or through, on behalf of, or in conjunction with any other person, persons, partnership, corporation, limited liability company, or other association or entity, own, maintain, operate, engage in or have any financial or beneficial interest in, advise, assist or make loans to, any business which is the same as or similar to a Card My Yard business (including any business that offers yard greeting services or other celebratory display items or services of any kind, including but not limited to, balloon displays, lighted displays, etc.) and which is, or is intended to be, located within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which we or our Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks; provided that during the two year-period following termination, expiration or transfer of the Franchise Agreement, the non-compete restrictions shall be limited to operations: (i) at the Franchise Location, (ii) within the Protected Area, (iii) within a twenty-five (25)-mile radius of the Franchise Location, or (iv) within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard Franchise Disclosure Document, a franchisee is subject to a non-compete agreement for two years following the termination, expiration, or transfer of their Franchise Agreement. This agreement restricts the franchisee from engaging in any business that is the same as or similar to a Card My Yard business. This includes businesses offering yard greeting services or other celebratory display items, such as balloon or lighted displays.
During this two-year period, the non-compete restrictions are specifically limited to operations (i) at the Franchise Location, (ii) within the Protected Area, (iii) within a twenty-five (25)-mile radius of the Franchise Location, or (iv) within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction. This means that a former franchisee cannot operate a competing business within these defined geographic areas.
These restrictions apply within the United States, its territories, commonwealths, or any other country, province, state, or geographic area where Card My Yard or its affiliates have used, sought registration of, or registered their Marks, or operate or license others to operate a business under the Marks. This broad geographic scope highlights the importance Card My Yard places on protecting its brand and market presence. A prospective franchisee should carefully consider these post-termination restrictions and their potential impact on future business ventures.