Does the Card My Yard Franchise Agreement contain a general release?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| i. Franchisee's obligations on termination/nonrenewal | Section XIX. | Stop operating your Card My Yard business and using the Card My Yard System, confidential methods, procedures, patents (if any), techniques, and Marks; cancel any registration containing the Marks; not use any imitation of the Marks; pay amounts due and our damages and enforcement costs; comply with confidentiality and non competition covenants; return all Manuals and other proprietary materials; furnish list of advertising/sales promotion materials bearing the Marks; at our option, transfer or assign to us your rights in business telephone numbers, advertising and promotional materials, furnishings, and equipment (including all yard signs and letters); and modify the appearance of the Card My Yard business. |
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| j. Assignment of contract by franchisor | Section XV.A. | We may transfer our rights without restriction. |
| k. "Transfer" by franchisee – defined | Sections XV.B. and XV.C. | You must not transfer any direct or indirect interest in you (i.e. the franchisee entity), the Franchise Agreement (including any transfer of zip codes or other partial territorial rights under the Franchise Agreement) or the assets of the franchised business without our consent. |
| l. Franchisor's approval of transfer by franchisee | Section XV.B. | We must consent and you must meet conditions before transferring. |
| m. Conditions for franchisor approval of transfer | Section XV.B. | Pay all amounts due; not be in default; sign a general release; pay transfer fee; remain liable for pre-transfer obligations; and obtain a one-year tail on insurance policies to cover liabilities that may have been incurred prior to the transfer. Transferee must meet our criteria, complete required training, guarantee obligations; enter into then-current franchise agreement and upgrade the Card My Yard business |
Source: Item 22 — CONTRACTS (FDD page 84)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a franchisee must sign a general release under certain conditions. Specifically, before transferring any interest in the franchise, the franchisee must sign a general release. This requirement is part of the conditions Card My Yard sets for approving a transfer.
The general release typically means the franchisee agrees to release Card My Yard from any claims or liabilities up to the date of the transfer. This is a common practice in franchising to ensure a clean break and prevent future disputes related to the franchisee's prior operation of the business.
For a prospective Card My Yard franchisee, this implies that if they decide to sell their franchise, they will need to sign a document releasing Card My Yard from potential liabilities. The franchisee will also need to meet other conditions such as paying all outstanding amounts, not being in default, paying a transfer fee, remaining liable for pre-transfer obligations, and obtaining a one-year tail on insurance policies to cover pre-transfer liabilities. The incoming franchisee must also meet Card My Yard's criteria, complete the required training, guarantee obligations, enter into the then-current franchise agreement, and upgrade the Card My Yard business.