Does the FDD mention any pending infringement litigation regarding the Card My Yard trademarks?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
692 | May 10, 2017 | 5350245 | December 5, 2017 | Principal | | STAKE THE YARD | | | | | | There is no presently effective determination of the USPTO, the trademark trial and appeal board, the trademark administrator of any state or any court, nor any pending infringement, opposition, or cancellation proceeding, nor any pending material litigation involving the Marks which is relevant to their ownership, use or licensing.
From time to time, we have identified competitors in some markets that have attempted to use trade names or trademarks that we consider to be confusingly similar to our "Card My Yard" mark, and we have taken actions
we deem appropriate in each of those cases to protect our Marks. In one case, we determined that legal action was appropriate to prevent infringement of our Marks by a competitor in Bethesda, Maryland, and our Parent, CMY Holdco, LLC, filed suit against such competitor on February 10, 2021 (CMY Holdco, LLC v. Elisa B. Silverman and John Doe Corp., Civil Case No. 21-341, in U.S. District Court for the District of Maryland. The suit alleged that Ms. Silverman infringed our Marks and engaged in unfair and deceptive trade practicesin violation of Maryland and federal law by operating under the trade names "Card Your Yard" and "Card On Your Yard", which we believe is confusingly similar to "Card My Yard". The parties resolved the dispute via a Settlement Agreement executed in July of 2021, which prohibits Ms. Silverman from operating under the names "Card Your Yard" or "Card On Your Yard" in the future.
We know of no superior prior rights and, except as noted above, no infringing use that could materially affect your use of the Marks, and we know of no agreements currently in effect which significantly limit our rights to use or license the use of the Marks in any manner material to the franchise.
Our rights to the Marks and the proprietary Business System know-how are derived from a nonexclusive perpetual license (the "Intercompany License") between us and our affiliate, CMY Holdco, LLC (successor-ininterest to Card My Yard, LLC).
Source: Item 13 — TRADEMARKS (FDD pages 46–48)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, there is no presently effective determination of the USPTO, the trademark trial and appeal board, the trademark administrator of any state or any court, nor any pending infringement, opposition, or cancellation proceeding, nor any pending material litigation involving the Marks which is relevant to their ownership, use or licensing. However, the FDD does state that Card My Yard has identified competitors using confusingly similar trademarks and has taken actions to protect their marks.
Specifically, Card My Yard mentions a lawsuit filed on February 10, 2021, by its Parent, CMY Holdco, LLC, against a competitor in Bethesda, Maryland, named Elisa B. Silverman, for operating under the trade names "Card Your Yard" and "Card On Your Yard". The suit alleged trademark infringement and unfair trade practices. This dispute was resolved in July 2021 via a Settlement Agreement, which prohibits Ms. Silverman from using those names in the future.
The Franchise Disclosure Document assures prospective franchisees that Card My Yard knows of no superior prior rights or infringing use that could materially affect a franchisee's use of the marks, except as noted in the document. However, Card My Yard is not obligated to protect the franchisee’s rights to use the marks or to protect them against claims of infringement or unfair competition. Card My Yard is also not obligated to participate in the franchisee’s defense or indemnify them for expenses or damages if they are party to an administrative or judicial proceeding involving the Marks if the proceeding is resolved unfavorable to them.
It is important for a prospective Card My Yard franchisee to understand that while Card My Yard intends to protect its trademarks, the franchisee bears the risk of any legal challenges related to trademark infringement and will be responsible for their own defense and costs in such cases. This is a fairly typical arrangement in franchising, where the franchisor owns the trademarks but the franchisee operates the business and is therefore more likely to face local infringement claims.