Does the Card My Yard general release extend to the franchisee's employees?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
other agreement with us or our Affiliates, and you and they shall have substantially and timely complied with all the terms and conditions of such agreements during their respective terms;
- (3) The transferor and its owners,if applicable, shall have executed a general release, in a form satisfactory to us, of any and all claims, against us and our Affiliates, 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 and any other agreement with us or our Affiliates, and under federal, state or local laws, rules, and regulations or orders;
- (4) The proposed transferee must demonstrate to our satisfaction that it meets our then-current qualifications, and, at the transferee's expense, its Principal Owner, General Manager, and any other personnel we require shall complete any training programs then in effect for Card My Yard businesses upon such terms and conditions as we may reasonably require;
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard FDD, the general release extends to various parties but does not explicitly mention the franchisee's employees. The FDD states that when transferring ownership, the transferor must execute a general release of claims against Card My Yard, its affiliates, and their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees. This release covers claims arising under the Franchise Agreement, other agreements, and federal, state, or local laws. Similarly, upon renewal of the franchise agreement, the franchisee and their owners must execute a general release covering the same parties and claims.
While the general release is comprehensive in terms of who is being released from claims, it focuses on the relationship between the franchisee (or transferor) and Card My Yard. The document does not specify that this release includes the franchisee's employees. However, the FDD includes a confidentiality agreement that the franchisee's employees must sign, protecting Card My Yard's confidential information and system. This agreement includes covenants not to compete and ensures employees maintain confidentiality and protect the goodwill of the Card My Yard system.
Given the absence of explicit mention of franchisee's employees in the general release clauses, a prospective franchisee should seek clarification from Card My Yard regarding whether the general release they must sign upon renewal or transfer also extends to cover their employees. Understanding the scope of this release is crucial for assessing potential liabilities and ensuring comprehensive protection for both the franchisor and franchisee.