Does the Card My Yard franchise agreement specify any financial thresholds related to the non-competition covenants?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Directly or indirectly divert, or attempt to divert any business opportunity or customer of Card My Yard businesses to any competitor; and
- b. Directly or indirectly, for yourself or through, on behalf of, or in conjunction with any other person, persons, partnership, corporation, limited liability company, or other association or entity, own, maintain, operate, engage in or have any financial or beneficial interest in, advise, assist or make loans to, any business which is the same as or similar to a Card My Yard business (including any business that offers yard greeting services or other celebratory display items or services of any kind, including but not limited to, balloon displays, lighted displays, etc.) and which is, or is intended to be, located within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which we or our Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks; provided that during the two year-period following termination, expiration or transfer of the Franchise Agreement, the non-compete restrictions shall be limited to operations: (i) at the Franchise Location, (ii) within the Protected Area, (iii) within a twenty-five (25)-mile radius of the Franchise Location, or (iv) within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction.
Franchisee's Undertaking
Franchisee agrees to make all commercially reasonable efforts to ensure that you act as required by this Agreement.
Miscellaneous
1. You agree that:
- a.
Each of the covenants herein contain reasonable limitations as to time, geographical area, and scope of activity to be restrained and do not impose a greater restraint than is necessary to protect the goodwill of the System or our other business interests.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard Franchise Disclosure Document, the franchise agreement does not specify any financial thresholds related to the non-competition covenants. Instead, the agreement focuses on preventing franchisees from engaging in activities that could harm the Card My Yard brand or divert business opportunities.
The agreement prohibits franchisees from diverting business opportunities or customers to competitors. It also restricts franchisees from owning, operating, or having a financial interest in any business similar to Card My Yard, including those offering yard greeting services or celebratory displays.
These non-compete restrictions are limited to a specific timeframe and geographic area. During the two-year period following the termination, expiration, or transfer of the Franchise Agreement, the non-compete restrictions apply to operations at the Franchise Location, within the Protected Area, within a 25-mile radius of the Franchise Location, or within a 25-mile radius of any existing or under-construction Card My Yard business. The agreement also states that these covenants contain reasonable limitations regarding time, geographical area, and scope of activity to protect the goodwill of the Card My Yard system.