Is the Card My Yard general release given freely and without influence?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
The date on which we notify you
whether or not we are exercising our options is referred to as the "Notification Date." We will have the unrestricted
right to assign these options, and we or our assignee will be entitled to all customary warranties and representations in connection with the asset transfer, including, without limitation, representations and warranties as to ownership and condition of and title to assets; liens and encumbrances on assets; validity of contracts and agreements; and liabilities affecting the assets, contingent or otherwise; and a general release.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, when Card My Yard exercises its option to acquire the assets of a franchisee's Card My Yard business, the franchisor or its assignee will be entitled to a general release. This release is part of the asset transfer and comes with customary warranties and representations. These include assurances about the ownership, condition, and title of the assets, as well as any liens, encumbrances, contract validity, and liabilities affecting the assets.
In practical terms, this means that if Card My Yard decides to buy back a franchise location, the franchisee will be required to sign a general release, which typically waives any claims the franchisee might have against the franchisor. This is a standard part of the acquisition process, ensuring that all legal matters related to the business are settled upon transfer. The franchisee should be aware that this release is a condition of the sale if Card My Yard chooses to exercise its option.
It is important for a prospective franchisee to understand the implications of this general release. While the FDD does not explicitly state that the release is given freely and without influence, the context suggests that it is a requirement for Card My Yard to proceed with the asset acquisition. Franchisees should seek legal counsel to fully understand the scope and impact of such a release before signing the franchise agreement.