Does the Card My Yard general release cover judgments?
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 the 2025 Card My Yard Franchise Disclosure Document, the general release provided by Card My Yard does include coverage for judgments. Specifically, if Card My Yard exercises its option to acquire the assets of the Card My Yard business from the franchisee, Card My Yard or its assignee will be entitled to a general release as part of the asset transfer. This release is part of the customary warranties and representations associated with the transfer.
This means that when a franchisee sells their Card My Yard business assets back to the franchisor, the franchisor will require a general release. This release likely protects Card My Yard from any future claims or liabilities related to the business's operations during the franchisee's ownership.
While the FDD mentions a "general release," it does not explicitly detail the scope or specific terms of this release. A prospective franchisee should carefully review the specific language of the release document with a legal professional to fully understand its implications, including what types of claims are covered and any potential exceptions.