In the Card My Yard franchise agreement, who benefits from and is bound by the Release?

According to Card My Yard's 2025 Franchise Disclosure Document, the transferor and its owners must execute a general release that benefits Card My Yard and its affiliates, along with their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, both past and present, in their corporate and individual capacities. This release covers any and all claims against these parties.

In practical terms, this means that if a franchisee decides to transfer their Card My Yard franchise to a new owner, the original franchisee and their owners must sign a release that prevents them from making any future claims against Card My Yard. This includes claims related to the franchise agreement, other agreements with Card My Yard, or any federal, state, or local laws and regulations.

The requirement for a general release is a protective measure for Card My Yard, ensuring that the company and its related parties are shielded from potential legal issues arising from the previous franchisee's operation of the business. This is a fairly standard practice in franchising, as franchisors want to avoid future liabilities when a franchise changes hands.

Prospective franchisees should understand that if they later decide to sell their Card My Yard franchise, they will be required to give up any rights to make claims against the franchisor. It is advisable to carefully consider this provision and seek legal counsel to fully understand the implications of signing such a release.