In the event of a breach of the Card My Yard agreement, what remedies are available to the franchisor?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
employees, agents, successors and assigns.
- (5) We may assign our options under this Section XIX.B.to any person or entity without your consent.
- C. Liquidated Damages/Unauthorized Closure Fee. Upon any unauthorized closure of the Card My Yard business by you or any termination of this Agreement in connection with a breach by you, you will be required to promptly pay us liquidated damages in an amount equal to the greater of (a) $6,600 or (b) the total royalties paid by you under this Agreement during the previous 12 months multiplied by two (or if your Card My Yard business has not been open for at least 12 months then your liquidated damages amount will be $6,600). Such amount shall be due and payable to us in one lump sum payment promptly upon our written request. Such liquidated damages are in addition to, and not in lieu of, any other remedies available to us under this Agreement and shall be due and payable
to us regardless of whether we terminate this Agreement or take other remedial actions.
D. Liquidated Damages/Non-Reporting or Under-Reporting Fee. An amount equal to $5,000 per occurrence will be owed for each instance when we document your intentional non-reporting or under-reporting of revenues that you realize and receive from your Card My Yard business. Upon such an occurrence, in addition to such fees, we will have a right to terminate the franchise without a right to cure.
XX. MISCELLANEOUS
A. Notices. Any and all notices required or permitted under this Agreement shall be in writing and shall be personally delivered or mailed by expedited delivery service or certified or registered mail, return receipt requested, first-class postage prepaid, or sent by electronic mail to the respective parties at the following addresses unless and until a different address has been designated by written notice to the other party:
Notices to us: CMY Franchising, LLC 761 W.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard Franchise Disclosure Document, if a franchisee breaches the agreement, Card My Yard has several remedies available. One such remedy involves liquidated damages for unauthorized closure or termination due to a franchisee breach. In these instances, the franchisee must pay Card My Yard the greater of $6,600 or two times the total royalties paid during the previous 12 months. If the business has been open for less than 12 months, the liquidated damages will be $6,600. This payment is due in a lump sum upon written request from Card My Yard and is in addition to any other remedies they may pursue.
Another remedy available to Card My Yard is a fee for intentional non-reporting or under-reporting of revenues. The franchisee will owe $5,000 per occurrence if Card My Yard documents such actions. In addition to this fee, Card My Yard has the right to terminate the franchise agreement without allowing the franchisee an opportunity to correct the issue.
Furthermore, if Card My Yard provides notice of default, they have the option to assume interim management of the Card My Yard business. This can occur during the period allowed for the franchisee to correct the default or instead of immediately terminating the agreement. If Card My Yard chooses to assume interim management, the franchisee remains responsible for their obligations under the agreement. Card My Yard is not liable for any debts, losses, costs, or expenses incurred during this period but can charge a reasonable fee for their management services. The franchisee must also indemnify Card My Yard against any claims or expenses related to their interim management, except those arising from Card My Yard's gross negligence or willful misconduct.