Does the Card My Yard franchise agreement specify any penalties for violating the confidentiality or non-competition covenants?

According to Card My Yard's 2025 Franchise Disclosure Document, violating the confidentiality and non-competition covenants outlined in the franchise agreement can lead to specific repercussions. If a franchisee or their owners disclose or divulge any confidential information contrary to the terms of Section XI.B. of the agreement, it constitutes a breach.

Additionally, the agreement specifies that during the term of association with or employment by the franchisee, and for two years following termination or transfer of the franchise, an individual cannot engage in activities that compete with Card My Yard. This includes diverting business, customers, or opportunities to competitors. The non-compete restrictions apply to operations at the franchise location, within the protected area, or within a 25-mile radius of the franchise location or any existing Card My Yard business.

While the document specifies that violating these covenants can lead to termination of the agreement, it does not explicitly detail specific monetary penalties or other remedies beyond the loss of the franchise. A prospective franchisee should seek clarification from Card My Yard regarding the full scope of potential penalties or legal actions that may arise from breaching these covenants.