In a Card My Yard franchise transfer, must the franchisee and its affiliates have substantially complied with all terms and conditions of agreements with the franchisor?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
- (2) You and your Affiliates shall not be in default of this Agreement or any other agreement with us or our Affiliates, and you and they shall have substantially and timely complied with all the terms and conditions of such agreements during their respective terms;
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their franchise must ensure that they and their affiliates have substantially complied with all the terms and conditions of any agreements with Card My Yard or its affiliates. This requirement is outlined as a condition for the transfer to be approved.
This means that if a franchisee or any of their affiliated businesses have failed to meet the obligations specified in their agreements with Card My Yard, such as timely payments, adherence to operational standards, or other contractual requirements, the transfer may be denied. Substantial compliance implies that any deviations from the agreements must not be significant or ongoing at the time of the proposed transfer.
For a prospective Card My Yard franchisee, this underscores the importance of maintaining good standing with the franchisor. It highlights the need to diligently fulfill all contractual obligations to ensure a smooth transfer process should the franchisee decide to sell the business in the future. Failure to do so could impede the transfer and potentially affect the value of the franchise.