Are Card My Yard franchisees compensated for Improvements they develop?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Improvements.
If you, your employees, or Owners develop any new concept, process or improvement in the operation or promotion of a Card My Yard business (an "Improvement"), you agree to promptly notify us and provide us with all necessary related information, without compensation.
Any such Improvement shall become our sole property and we shall be the sole owner of all related patents, patent applications, and other intellectual property rights.
You and your Owners hereby assign to us any rights you or they may have or acquire in the Improvements, including the right to modify the Improvement, and waive and/or release all rights of restraint and moral rights therein and thereto.
You and your Owners agree to assist us in obtaining and enforcing the intellectual
property rights to any such Improvement in any and all countries and further agree to execute and provide us with all necessary documentation for obtaining and enforcing such rights. You and your Owners hereby irrevocably designate and appoint us as your and their agent and attorney-in-fact to execute and file any such documentation and to do all other lawful acts to further the prosecution and issuance of patents or other intellectual property right related to any such Improvement. In the eventthatthe foregoing provisions of this Section XI.D. are found to be invalid or otherwise unenforceable, you and your Owners hereby grant to us a worldwide, perpetual, nonexclusive, fully paid license to use and sublicense the use of the Improvement to the extent such use or sublicense would, absent this Agreement, directly or indirectly infringe your or their rights therein.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees are required to promptly notify Card My Yard of any new concepts, processes, or improvements they develop related to the operation or promotion of the business. These "Improvements" become the sole property of Card My Yard, and franchisees will not receive any compensation for them.
This means that if a franchisee comes up with a new, successful marketing strategy or an innovative way to improve the efficiency of the Card My Yard business, Card My Yard owns that idea outright. The franchisee must provide all necessary information about the improvement to Card My Yard. Card My Yard also gains ownership of all related patents, patent applications, and other intellectual property rights.
The franchisee also agrees to assist Card My Yard in obtaining and enforcing intellectual property rights to any such improvement. This includes executing necessary documentation. Card My Yard is irrevocably designated as the franchisee's agent and attorney-in-fact to file documentation and pursue patents or other intellectual property rights related to the improvement.
In the event that the provisions assigning ownership of improvements to Card My Yard are deemed invalid or unenforceable, the franchisee grants Card My Yard a worldwide, perpetual, nonexclusive, fully paid license to use and sublicense the improvement. This ensures that Card My Yard can still utilize the improvement even if the original ownership assignment is challenged.