Does the Card My Yard general release cover claims that are contingent?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
We will have the unrestricted
right to assign these options, and we or our assignee will be entitled to all customary warranties and representations in connection with the asset transfer, including, without limitation, representations and warranties as to ownership and condition of and title to assets; liens and encumbrances on assets; validity of contracts and agreements; and liabilities affecting the assets, contingent or otherwise; and a general release.
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 associated with the asset transfer includes liabilities affecting the assets, whether contingent or otherwise. This means that when Card My Yard exercises its option to acquire the assets of a franchisee's business, the general release provided by the franchisee covers not only known liabilities but also potential or uncertain liabilities that may arise in the future.
For a prospective Card My Yard franchisee, this implies that upon the sale of their business assets back to Card My Yard, the release they provide must cover any existing or potential future claims related to those assets. This could include pending lawsuits, potential future claims from customers, or any other unforeseen liabilities connected to the business's assets.
It is important for franchisees to understand the scope of this general release and potentially seek legal counsel to assess the implications of releasing Card My Yard from contingent liabilities. This ensures that the franchisee is not exposed to unexpected financial risks after the sale of their business assets.