Does the Card My Yard general release apply to the Releasors' affiliates?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) You and your Owners must execute a general release of any and all claims against us, our Affiliates, and 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 or under federal, state or local laws, rules, 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, the general release applies to the releasor's affiliates. Specifically, when renewing the franchise agreement, the franchisee and their owners must execute a general release of claims against Card My Yard, its affiliates, and their respective personnel. This release covers all claims, including those arising from the franchise agreement or under any laws.
This requirement means that as a condition of renewing their Card My Yard franchise, franchisees must waive their rights to sue Card My Yard and related parties. This includes not only the franchisor itself but also its affiliates, officers, directors, shareholders, and employees. The scope of the release is broad, encompassing any claims arising from the franchise agreement or any federal, state, or local laws.
For a prospective Card My Yard franchisee, this condition has significant implications. Before renewing the franchise agreement, they must carefully consider whether they have any existing or potential claims against Card My Yard or its affiliates. Agreeing to the release would mean forfeiting the right to pursue those claims in the future. Franchisees should seek legal counsel to fully understand the ramifications of signing such a release.
This type of general release is not uncommon in franchise agreements, particularly upon renewal or transfer. It serves to protect the franchisor from potential litigation and ensures a clean break or continuation of the relationship. However, franchisees should be aware of their rights and the potential consequences of waiving them.