What geographic areas are covered by the non-compete clause for Card My Yard franchisees?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- a. Directly or indirectly divert, or attempt to divert any business opportunity or customer of Card My Yard businesses to any competitor; and
- b. Directly or indirectly, for yourself or through, on behalf of, or in conjunction with any other person, persons, partnership, corporation, limited liability company, or other association or entity, own, maintain, operate, engage in or have any financial or beneficial interest in, advise, assist or make loans to, any business which is the same as or similar to a Card My Yard business (including any business that offers yard greeting services or other celebratory display items or services of any kind, including but not limited to, balloon displays, lighted displays, etc.) and which is, or is intended to be, located within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which we or our Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks; provided that during the two year-period following termination, expiration or transfer of the Franchise Agreement, the non-compete restrictions shall be limited to operations: (i) at the Franchise Location, (ii) within the Protected Area, (iii) within a twenty-five (25)-mile radius of the Franchise Location, or (iv) within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction.
Franchisee's Undertaking
Franchisee agrees to make all commercially reasonable efforts to ensure that you act as required by this Agreement.
Miscellaneous
1. You agree that:
- a.
Each of the covenants herein contain reasonable limitations as to time, geographical area, and scope of activity to be restrained and do not impose a greater restraint than is necessary to protect the goodwill of the System or our other business interests.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the non-compete clause restricts franchisees from engaging in similar businesses within specific geographic areas. During the term of the franchise agreement, franchisees are restricted from operating a similar business within the United States, its territories, commonwealths, or any other country, province, state, or geographic area where Card My Yard or its affiliates have used, sought registration, or registered their marks, or operate or license others to operate a business under similar marks. This broad restriction applies as long as the franchise agreement is active.
After the termination, expiration, or transfer of the Franchise Agreement, the geographic scope of the non-compete becomes more limited. For a period of two years following the end of the agreement, the non-compete restrictions apply to operations (i) at the Franchise Location, (ii) within the Protected Area, (iii) within a twenty-five (25)-mile radius of the Franchise Location, or (iv) within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction.
These restrictions are designed to protect Card My Yard's market presence and goodwill. The FDD states that these covenants contain reasonable limitations regarding time, geographical area, and scope of activity, ensuring they do not impose a greater restraint than necessary to protect the System's goodwill or Card My Yard's other business interests. Prospective franchisees should carefully consider these non-compete terms and how they might affect their future business opportunities after the franchise agreement ends.