factual

Are the franchisee's managers included in the Card My Yard general release?

Card_My_Yard Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (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;

Source: Item 23 — RECEIPTS (FDD pages 84–259)

What This Means (2025 FDD)

According to Card My Yard's 2025 Franchise Disclosure Document, a general release is required from the transferor and its owners when transferring ownership of a franchise. This release must be in a form satisfactory to Card My Yard and covers any and all 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. The claims include, but are not limited to, those arising under the Franchise Agreement, any other agreement with Card My Yard or its affiliates, and under federal, state, or local laws, rules, regulations, or orders.

While the general release explicitly mentions the transferor and its owners, it does not specifically state that the franchisee's managers, such as the General Manager, must execute this release. The document outlines the requirements for the Principal Owner and General Manager, including qualifications, training, and supervisory responsibilities, but it does not directly link these roles to the general release required during a transfer.

Therefore, a prospective Card My Yard franchisee should clarify with the franchisor whether the general release extends to the franchisee's managers, particularly the General Manager, during a transfer of ownership. Understanding the scope of this release is crucial for ensuring compliance and avoiding potential legal issues during a franchise transfer.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.