What is the duration of the non-compete period for Card My Yard after the agreement expires?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 Card My Yard's 2025 Franchise Disclosure Document, a franchisee is restricted from engaging in competitive activities for two years after the termination, expiration, or transfer of the Franchise Agreement. This non-compete clause prevents the franchisee from directly or indirectly diverting business opportunities or customers from Card My Yard to competitors.
The restrictions apply to owning, maintaining, operating, or having a financial interest in any business similar to Card My Yard, including those offering yard greeting services or celebratory displays. This includes balloon displays and lighted displays. The geographic scope of the non-compete is limited to (i) the Franchise Location, (ii) 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.
These non-compete terms are designed to protect Card My Yard's business interests and goodwill. The FDD states that the covenants within the agreement contain reasonable limitations regarding time, geographical area, and scope of activity. These limitations are not intended to impose a greater restraint than necessary to protect the Card My Yard system. Franchisees should be aware of these post-termination restrictions and factor them into their long-term business plans.