What is the franchisee's obligation regarding verification of compliance with representations, warranties, and covenants in the Card My Yard Franchise Agreement?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- H. Continuing Obligations. You and your Owners make the foregoing representations, warranties and covenants understanding that such representations, warranties and covenants are continuing obligations. You agree to cooperate with us to verify your and your Owners' continuing compliance with such representations, warranties and covenants. Any failure to comply with these representations, warranties and covenants will constitute a material event of default under 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, franchisees and their owners have a continuing obligation to adhere to the representations, warranties, and covenants outlined in the Franchise Agreement. Franchisees must cooperate with Card My Yard to verify their ongoing compliance and the compliance of their owners with these stipulations.
This means that Card My Yard has the right to request information and documentation from franchisees to ensure they are meeting their obligations under the agreement. This could include financial records, operational data, or other information relevant to the representations, warranties, and covenants.
Failure to comply with these representations, warranties, and covenants constitutes a material event of default under the Franchise Agreement, which could lead to penalties or termination of the franchise. Therefore, it is crucial for prospective Card My Yard franchisees to understand and adhere to all terms outlined in the agreement and to cooperate fully with the franchisor in verifying compliance.