Does the Card My Yard general release extend to the franchisee's parents, subsidiaries, and affiliates?
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 Franchise Disclosure Document, the general release extends to the franchisee's affiliates but does not specifically mention parents or subsidiaries. During a transfer or renewal of the franchise agreement, the franchisee and their owners must execute a general release of claims. This release protects Card My Yard, its affiliates, and their respective personnel from any claims.
Specifically, the release covers claims against Card My Yard, its affiliates, and their officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, both past and present, in their corporate and individual capacities. This includes, but is not limited to, claims arising from the Franchise Agreement or under federal, state, or local laws and regulations.
For a prospective Card My Yard franchisee, this means that when transferring the franchise or renewing the agreement, they must sign a release that prevents them from suing Card My Yard or its affiliates for any reason. This is a standard practice in franchising to protect the franchisor from potential legal issues. Franchisees should carefully consider this provision and any potential claims they may have before signing the release. It is advisable to seek legal counsel to fully understand the implications of the general release.