factual

What events are considered 'Force Majeure' that might affect a Card My Yard franchise?

Card_My_Yard Franchise · 2025 FDD

Answer from 2025 FDD Document

"Force Majeure" means acts of God, strikes, lockouts or other industrial disturbances, war, acts of terrorism, riot, epidemic, fire or other catastrophe or other forces beyond a party's control.

If you are unable to continue the operation of the Card My Yard business at the Franchise Location because of the occurrence of an event of Force Majeure or for other reasons not constituting an event of default under this Agreement, you may request our consent to relocate the Card My Yard business to another location in the Protected Area.

provided, that this provision shall not apply upon the occurrence of an event of Force Majeure, if you apply within thirty (30) days after such event for our approval to relocate or reconstruct the Card My Yard business and you diligently pursue such reconstruction or relocation.

Source: Item 23 — RECEIPTS (FDD pages 84–259)

What This Means (2025 FDD)

According to Card My Yard's 2025 Franchise Disclosure Document, a 'Force Majeure' event includes acts of God, strikes, lockouts or other industrial disturbances, war, acts of terrorism, riot, epidemic, fire or other catastrophe, or other forces beyond a party's control.

For a Card My Yard franchisee, the occurrence of a Force Majeure event could impact their ability to operate their business at the Franchise Location. If such an event occurs, and the franchisee is unable to continue operations at their current location, they have the option to request consent from Card My Yard to relocate the business to another location within their Protected Area. This request must be submitted as soon as possible, but no later than 10 days after discovering the inability to continue operations at the current location.

It's important to note that even if a Force Majeure event occurs, the franchisee must still apply for approval to relocate or reconstruct the Card My Yard business within thirty days of the event and diligently pursue the relocation or reconstruction. While Card My Yard's approval will not be unreasonably withheld, it may be conditioned upon the payment of an agreed minimum fee during the period the business is not in operation. This highlights the importance of having contingency plans and adequate insurance coverage to mitigate potential losses from such events.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.