Can a Card My Yard franchisee face competition from outlets that the franchisor owns?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
tional franchise, you must enter into a separate Franchise Agreement for that franchise.
Neither we nor our affiliates have established or have present plans to establish franchises, company-owned outlets or other channels of distribution offering and selling products and services similar to those to be offered by you under different trademarks. There are, however, no restrictions in the Franchise Agreement that would prohibit us from doing so.
You may use the Internet to advertise only on our website and only to the extent expressly permitted under, and in compliance with, the Franchise Agreement.
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 can face competition from outlets that Card My Yard owns. While Card My Yard states that neither they nor their affiliates have present plans to establish company-owned outlets offering similar products and services under different trademarks, there are no restrictions in the Franchise Agreement that would prohibit them from doing so in the future. This means that even though Card My Yard doesn't currently have plans to open competing outlets, they retain the right to do so.
Furthermore, the FDD clarifies that a Card My Yard franchisee will not receive an exclusive territory. The document explicitly states that franchisees may face competition from other franchisees, from outlets that Card Myard owns, or from other channels of distribution or competitive brands that Card My Yard controls. This confirms that the possibility of competition from franchisor-owned outlets is a real risk for franchisees.
This lack of an exclusive territory and the potential for competition from Card My Yard-owned outlets is a significant factor for prospective franchisees to consider. It means that the success of a Card My Yard franchise is not solely dependent on the franchisee's efforts but can be influenced by decisions made by the franchisor regarding the establishment of competing outlets. A prospective franchisee should carefully evaluate the market and potential competition before investing in a Card My Yard franchise.