Does the Card My Yard general release cover suits?
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 is mentioned within the context of the franchisor, CMY Franchising, LLC, exercising its option to acquire the assets of a franchisee's Card My Yard business. If Card My Yard exercises this option, they or their assignee will be entitled to a general release as part of the asset transfer.
The FDD specifies that this general release is connected to customary warranties and representations related to the asset transfer. These include assurances regarding ownership, condition, title to assets, liens and encumbrances, validity of contracts, and liabilities affecting the assets.
However, the document does not explicitly detail the scope or specific terms of the general release. It remains unclear what types of claims or suits would be covered by this release. A prospective franchisee should seek clarification from Card My Yard regarding the precise language and implications of the general release to fully understand their rights and obligations in the event of an asset acquisition by the franchisor.