Does the Card My Yard general release cover claims that are vested?
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, when Card My Yard exercises its option to acquire the assets of a franchisee's Card My Yard business, the agreement includes a general release. This release is part of the customary warranties and representations in connection with the asset transfer.
The general release provision is tied to Card My Yard's right to purchase the assets of the business. This includes representations and warranties related to the ownership, condition, and title of assets, any liens or encumbrances on the assets, the validity of contracts and agreements, and any liabilities affecting the assets, whether contingent or otherwise.
However, the FDD does not specify whether this general release extends to cover claims that are considered 'vested.' A prospective franchisee should seek clarification from Card My Yard regarding the scope of this general release, specifically whether it includes a release of claims that have already accrued or vested as of the date of the asset transfer and release.