Does the Card My Yard general release extend to the Released Parties' past shareholders?

According to Card My Yard's 2025 Franchise Disclosure Document, the general release extends to past and present shareholders. Specifically, if a franchisee transfers their franchise, the transferor must execute a general release of all claims against Card My Yard and its affiliates, including 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 covers all claims, including those arising under the Franchise Agreement, other agreements with Card My Yard or its affiliates, and under federal, state, or local laws, rules, and regulations or orders.

This requirement ensures that Card My Yard is protected from potential liabilities or legal issues that may arise from the franchisee's operation before the transfer. By requiring a general release, Card My Yard aims to avoid future disputes and maintain a clear separation of responsibilities between the transferring franchisee and the brand.

For a prospective Card My Yard franchisee, this means that when selling their franchise, they must sign a release that covers a broad range of potential claims against Card My Yard and its associated parties. Franchisees should carefully review the terms of the release with legal counsel to understand the full scope of what they are relinquishing. This is a standard practice in franchising to protect the franchisor from potential liabilities when a franchise changes hands.