Can a Card My Yard franchisee elect to have deductibles in connection with the required insurance coverage?

According to Card My Yard's 2025 Franchise Disclosure Document, franchisees can elect to have reasonable deductibles in connection with their required insurance coverage. Specifically, this applies to the insurance coverage detailed in Sections XIII.A(1)-(3) of the agreement. These sections pertain to comprehensive general liability insurance, automobile insurance, and any other insurance that Card My Yard may require from time to time or that may be required by the landlord or by state or local regulations.

This election provides franchisees with some flexibility in managing their insurance costs. By choosing to have deductibles, a franchisee may lower their premium payments. However, this also means they will be responsible for covering the deductible amount out-of-pocket in the event of a claim. The FDD does not specify what constitutes a 'reasonable' deductible, so franchisees should discuss this with their insurance provider and Card My Yard to ensure compliance with the franchise agreement.

It is important for prospective Card My Yard franchisees to carefully consider the implications of choosing deductibles, balancing the potential cost savings against the risk of having to pay out-of-pocket expenses. Franchisees should also be aware that all required insurance policies must include a waiver of subrogation in favor of Card My Yard, its affiliates, and their respective personnel. This means that the insurance company will not be able to pursue Card My Yard to recover any claim payments made to the franchisee.