What is the effect of termination on the rights granted to the Card My Yard franchisee under the agreement?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
fees) incurred in connection with our interim management of the Card My Yard business, other than those arising solely from our gross negligence or willful misconduct.
XIX. POST-TERMINATION
A. Your Obligations Upon Termination. Upon the termination or expiration of this Agreement for any reason, all rights granted to you will terminate, and you must:
(1) Immediately cease to operate the Card My Yard business under this Agreement, and shall not thereafter, directly or indirectly, represent to the public or hold yourself out as one of our present or former franchisees.
(2) Immediately and permanently cease to use, in any manner whatsoever, the Marks and any Confidential Information associated with the System. Without limitation of the foregoing, you must cease to use all signs, advertising materials, displays, stationery, forms and any other items which display the Marks.
(3) Take such action as may be necessary to cancel any assumed name, fictitious name or equivalent registration 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.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, termination of the Franchise Agreement results in an immediate cessation of all rights granted to the franchisee. Upon termination or expiration of the agreement, the franchisee must immediately stop operating the Card My Yard business and cannot represent themselves as a current or former franchisee.
Furthermore, the franchisee must immediately and permanently discontinue all use of Card My Yard's marks and confidential information, including signs, advertising materials, displays, stationery, and forms. The franchisee is also required to cancel any assumed name, fictitious name, or equivalent registration that contains the "Card My Yard" mark or any other mark associated with the franchise, providing satisfactory evidence of compliance within five days of termination or expiration.
Additionally, Card My Yard retains the right to be the franchisee's attorney-in-fact to assign telephone numbers, business listings, website listings, search engine rights, and potentially the franchisee's interest in any lease for the franchise location and equipment. This power of attorney survives the termination or expiration of the agreement, ensuring Card My Yard can manage these assets post-termination.