Are the franchisee's agents included in the Card My Yard general release?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
- (3) The transferor and its owners,if applicable, shall have executed a general release, in a form satisfactory to us, of any and all claims, against us and our Affiliates, our and their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants and employees, past and present, in their corporate and individual capacities,including, without limitation, claims arising under this Agreement and any other agreement with us or our Affiliates, and under federal, state or local laws, rules, and regulations or orders;
- (4) The proposed transferee must demonstrate to our satisfaction that it meets our then-current qualifications, and, at the transferee's expense, its Principal Owner, General Manager, and any other personnel we require shall complete any training programs then in effect for Card My Yard businesses upon such terms and conditions as we may reasonably require;
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the general release required from the transferor and its owners includes claims against Card My Yard and its affiliates, as well as their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, both past and present, in their corporate and individual capacities. This release covers all claims, including those arising under the Franchise Agreement, other agreements with Card My Yard or its affiliates, and under federal, state, or local laws, rules, and regulations or orders.
Similarly, when renewing the franchise agreement, the franchisee and their owners must execute a general release of any and all claims against Card My Yard, its affiliates, and their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, past and present, in their corporate and individual capacities. This release includes claims arising under the Franchise Agreement or under federal, state, or local laws, rules, regulations, or orders.
In practical terms, this means that if a franchisee sells their Card My Yard business, the seller (transferor) and their owners must sign a release that prevents them from suing Card My Yard or its associated parties. The release extends to a wide range of individuals and entities connected to Card My Yard, ensuring comprehensive protection against potential future claims. A similar release is required when a franchisee renews their franchise agreement.
Prospective franchisees should be aware of the broad scope of this release, as it could limit their ability to pursue legal action against Card My Yard or its representatives in the future. It is advisable to carefully review the terms of the release with legal counsel to fully understand its implications before signing the Franchise Agreement or any renewal agreements.