Can a Card My Yard franchisee operate a similar business during the term of the agreement?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
thereof, or (ii) the termination, expiration or transfer of Franchisee's interest in the Franchise Agreement, you will not, without our prior written consent or as permitted under other valid Franchise Agreements for Card My Yard businesses between Franchisee and us:
- a. Directly or indirectly divert, or attempt to divert any business opportunity or customer of Card My Yard businesses to any competitor; and
- b. Directly or indirectly, for yourself or through, on behalf of, or in conjunction with any other person, persons, partnership, corporation, limited liability company, or other association or entity, own, maintain, operate, engage in or have any financial or beneficial interest in, advise, assist or make loans to, any business which is the same as or similar to a Card My Yard business (including any business that offers yard greeting services or other celebratory display items or services of any kind, including but not limited to, balloon displays, lighted displays, etc.) and which is, or is intended to be, located within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which we or our Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks; provided that during the two year-period following termination, expiration or transfer of the Franchise Agreement, the non-compete restrictions shall be limited to operations: (i) at the Franchise Location, (ii) within the Protected Area, (iii) within a twenty-five (25)-mile radius of the Franchise Location, or (iv) within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction.
Franchisee's Undertaking
Franchisee agrees to make all commercially reasonable efforts to ensure that you act as required by this Agreement.
Miscellaneous
1. You agree that:
- a. Each of the covenants herein contain reasonable limitations as to time, geographical area, and scope of activity to be restrained and do not impose a greater restraint than is necessary to protect the goodwill of the System or our other business interests.
- b. Each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard Franchise Disclosure Document, a franchisee is restricted from operating a similar business during the term of the agreement. Specifically, the franchisee cannot directly or indirectly own, maintain, operate, or have any financial interest in a business that is the same as or similar to a Card My Yard business. This includes businesses offering yard greeting services, celebratory display items, balloon displays, or lighted displays. This restriction applies within the United States, its territories, commonwealths, or any other country where Card My Yard or its affiliates have registered trademarks or operate businesses.
This restriction extends beyond just the franchisee. The franchisee must ensure that their Principal Owner and General Manager, who are responsible for the Card My Yard business's supervision, do not engage in any other business without Card My Yard's written consent. This is to ensure their full attention and best efforts are dedicated to the Card My Yard franchise. The Principal Owner must devote full-time efforts to the Card My Yard business unless a separate General Manager is approved.
Following the termination, expiration, or transfer of the Franchise Agreement, a non-compete restriction applies for two years. This limits the franchisee from operating a similar business at the Franchise Location, within the Protected Area, within a 25-mile radius of the Franchise Location, or within a 25-mile radius of any existing or under-construction Card My Yard business. These measures are in place to protect Card My Yard's market and goodwill, preventing franchisees from leveraging the brand's reputation to compete against it directly, even after the franchise agreement ends.