Does the Card My Yard general release extend to the Released Parties' past employees?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
er from the terms of this Agreement, except thatthe fees on renewal will not be greater than the feesthat we then impose on similarly situated renewing franchisees;
- (7) You and your Owners must execute a general release of any and all claims against us, our Affiliates, and 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 or under federal, state or local laws, rules, regulations or orders;
- (8) You must pay us a renewal fee in the amount of $3,000; and
- (9) You must comply with our then-current qualification and training requirements.
V. FEES
- A. Initial Franchise Fee. You agree to pay us an initial franchise fee of Eight Thousand Five Hundred Dollars ($8,500) upon the execution of this Agreement. The initial franchise fee shall be deemed fully earned and nonrefundable upon receipt by us.
- B. Royalty Fee.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a general release is required from existing franchisees upon renewal of their franchise agreement, and from transferors (the seller) when a franchise is transferred to a new owner. This release extends to Card My Yard, its affiliates, and their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, both past and present, in their corporate and individual capacities.
This means that when renewing their franchise agreement, franchisees must waive any and all claims against Card My Yard and related parties. Similarly, when transferring a franchise, the seller must also provide a general release. This release covers a broad range of potential claims, including those arising from the franchise agreement itself, other agreements with Card My Yard, or under any federal, state, or local laws.
For a prospective Card My Yard franchisee, this requirement highlights the importance of understanding all aspects of the franchise agreement and the franchisee's relationship with Card My Yard. It also emphasizes the need to resolve any potential disputes or concerns before renewing the agreement or selling the franchise, as the general release will waive any future claims. The franchisee should seek legal counsel to fully understand the implications of signing such a release.