Does a Card My Yard franchisee have exclusivity within the 'Designated Search Area'?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
hise Agreement, Section VIII.A.).
ITEM 12: TERRITORY
The Franchise Agreement gives you the right to operate a Card My Yard business at a site we accept as meeting our site selection guidelines (the "Location"). We anticipate that most, if not all, of our franchisees will operate their Card My Yard businesses from their homes. However, if you elect to operate from a site other than your home, then you must select the site for your Card My Yard business from within a non-exclusive "Designated Search Area" that will be agreed upon and identified in Exhibit C to your Franchise Agreement. If applicable, the Designated Search Area will be agreed upon by you and us before your execution of the Franchise Agreement. If you choose to operate your Card My Yard business from your home then there will be no need to identify a Designated Search Area. You will have no exclusivity or other rights within the Designated Search Area other than the right to identify a proposed site for your Card My Yard business. After you locate a site acceptable to us or notify us that you will operate your Card My Yard business from your home we will grant you a "Protected Area" around your site as described below.
Source: Item 12 — TERRITORY (FDD pages 43–46)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a franchisee does not receive an exclusive territory within the Designated Search Area. The Designated Search Area is a non-exclusive area agreed upon by the franchisor and franchisee, from which the franchisee can propose a site for their Card My Yard business if they choose not to operate from home. The franchisee only has the right to identify a proposed site within this area.
Once a site is approved, or if the franchisee operates from home, Card My Yard grants a "Protected Area." While Card My Yard will not establish or authorize another Card My Yard business within the Protected Area, the franchisee may still face competition from other franchisees, company-owned outlets, or other channels of distribution or competitive brands that Card My Yard controls.
This lack of exclusivity in the Designated Search Area means a prospective Card My Yard franchisee needs to carefully consider the potential for competition when selecting their location. They should also be aware that Card My Yard retains the right to develop other business systems, offer similar products or services through different channels, and even acquire competing systems, all of which could impact the franchisee's business, even within their Protected Area.