What happens to a Card My Yard franchise in the event of the death or permanent disability of the franchisee?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| n. Franchisor's right of first refusal to acquire franchisee's business | Section XV.D. | On 30 days' written notice, we have the option to purchase an interest being transferred on the same terms and conditions offered by a third party. |
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| o. Franchisor's option to purchase franchisee's business | Sections XIX.A(8) and (9) and XIX.B. | Upon termination or expiration we have the option to purchase your advertising materials bearing the Marks at your cost. We also have the option to acquire the assets of the Card My Yard business (including all yard signs and letters) from you at fair market value. |
| p. Death or disability of franchisee | Section XV.E. | On death or permanent disability of you or an Owner the person's interest must be transferred to someone we approve within 6 months. |
Source: Item 17 — RENEWAL TERMINATION TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 51–55)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, in the event of the death or permanent disability of a franchisee or an owner, the interest in the franchise must be transferred to someone approved by Card My Yard within 6 months.
This means that if a Card My Yard franchisee passes away or becomes permanently disabled, their ownership interest in the franchise is not automatically transferred to their heirs or another party. Instead, the rights must be transferred to a person or entity that Card My Yard approves. This provision allows Card My Yard to maintain control over who operates their franchises and ensures that any new franchisee meets their standards and qualifications.
For a prospective franchisee, this highlights the importance of succession planning. Franchisees should consider having a plan in place for who would take over the business in the event of death or disability, and ensure that this person or entity would likely be approved by Card My Yard. This could involve identifying a potential successor and ensuring they have the necessary skills and training, or making arrangements for the sale of the franchise to a qualified buyer. It is important to discuss this matter with Card My Yard to fully understand their requirements and approval process.