Who is the Card My Yard Franchise Agreement binding upon?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
agree to execute such forms and documents as we deem necessary to appoint us your true and lawful attorney-in-fact with full power and authority for the foregoing purposes.
- H. Continuing Obligations. You and your Owners make the foregoing representations, warranties and covenants understanding that such representations, warranties and covenants are continuing obligations. You agree to cooperate with us to verify your and your Owners' continuing compliance with such representations, warranties and covenants. Any failure to comply with these representations, warranties and covenants will constitute a material event of default under this Agreement.
VIII. OPERATIONS
A. Training. Your Principal Owner and General Manager must successfully complete our initial online training program before the Opening Date. Any successor or replacement Principal Owner or General Manager must successfully complete our initial online training program within a reasonable time after such persons are designated, provided that each successor or replacement must successfully complete training no more than sixty (60) days after the date on which his or her predecessor ceased to be employed by you (or ceased to serve as Principal Owner, as applicable). These persons, and any of your other personnel whom we may designate, must complete any additional training that we may require from time to time. In addition, we may, at our option, conduct periodic franchisee conventions at a location designated by us, and your Principal Owner and/or General Manager must attend such conventions. At our option, we may certify your Principal Owner or General Manager (following their completion of all applicable training as required by us) as a "Certified Trainer" authorized to provide and conduct one or more designated training programs (as determined by us) for new or replacement employees at your Card My Yard business;
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
Based on the 2025 Card My Yard Franchise Disclosure Document, several clauses outline who the agreement binds and affects. Specifically, the agreement binds the franchisee and their owners to certain representations, warranties, and covenants, understanding these are continuing obligations. The franchisee agrees to cooperate with Card My Yard to verify their and their Owners' ongoing compliance. Failure to comply constitutes a material event of default under the agreement.
Furthermore, the agreement addresses transfers of the franchise. If a franchisee seeks to transfer their Card My Yard business, the proposed transferee must enter into a written agreement assuming full liability for all obligations under the original agreement. The transferee must also execute Card My Yard's then-current form of franchise agreement. This ensures that any new owner is fully bound by the obligations and standards of the Card My Yard franchise system.
Additionally, upon termination or expiration of the agreement, the franchisee grants Card My Yard a power of attorney to manage certain aspects of the business. This includes assigning telephone numbers, business listings, website rights, and, at Card My Yard's option, the interest in any lease for the Franchise Location and equipment. This power of attorney survives the termination of the agreement, ensuring a smooth transition and protecting Card My Yard's interests.