Does the Card My Yard general release extend to the Released Parties' past officers?
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 Card My Yard's 2025 Franchise Disclosure Document, the general release that franchisees must execute extends to past officers. Specifically, when transferring a franchise, the transferor and its owners must execute a general release of all claims against 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 release includes claims arising under the Franchise Agreement, any other agreement with Card My Yard or its affiliates, and under federal, state, or local laws, rules, regulations, or orders.
Similarly, when renewing a franchise agreement, franchisees and their owners must execute a general release of any and all claims against Card My Yard, its affiliates, and their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, past and present, in their corporate and individual capacities. This release includes, without limitation, claims arising under the Franchise Agreement or under federal, state, or local laws, rules, regulations, or orders.
This requirement ensures that Card My Yard and its related parties are protected from potential legal claims by the franchisee, both during the term of the agreement and upon its termination or transfer. The inclusion of past officers in the release provides an additional layer of protection for Card My Yard, covering potential liabilities related to individuals who previously held positions within the company. Prospective franchisees should carefully consider the scope of this release and consult with legal counsel to understand its implications before signing the franchise agreement.