What happens if a Card My Yard franchisee fails to comply with the management requirements?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
(8) If you fail to comply with any other requirement imposed by this Agreement, or fail to carry out the terms of this Agreement in good faith and fail to cure such default within thirty (30) days following notice from us.
D.
Our Right to Provide Interim Management.
If we have given you notice that you are in default, then we may (but are not obligated to) assume interim management of the Card My Yard business during the pendency of any cure period or in lieu of immediately terminating this Agreement.
If we elect to assume interim management of the Card My Yard business (i) our election will not relieve you of your obligations under this Agreement; (ii) we will not be liable for any debts, losses, costs or expenses incurred in the operation of the Card My Yard business during any such interim management period; (iii) we will have the right to charge a reasonable fee for our management services; and (iv) you agree to, and hereby do, indemnify and hold us harmless against any and all claims, demands, judgments, fines, losses, liabilities, costs, amounts paid in settlement and reasonable expenses (including, but not limited to attorneys' fees) incurred in connection with our interim management of the Card My Yard business, other than those arising solely from our gross negligence or willful misconduct.
XIX. POST-TERMINATION
A. Your Obligations Upon Termination. Upon the termination or expiration of this Agreement for any reason, all rights granted to you will terminate, and you must:
(1) Immediately cease to operate the Card My Yard business under this Agreement, and shall not thereafter, directly or indirectly, represent to the public or hold yourself out as one of our present or former franchisees.
(2) Immediately and permanently cease to use, in any manner whatsoever, the Marks and any Confidential Information associated with the System. Without limitation of the foregoing, you must cease to use all signs, advertising materials, displays, stationery, forms and any other items which display the Marks.
(3) Take such action as may be necessary to cancel any assumed name, fictitious name or equivalent registration which contains the mark "Card My Yard" or any other Mark, and furnish us with satisfactory evidence of compliance within five (5) days after termination or expiration of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if a franchisee fails to comply with any requirements of the agreement, or fails to carry out the terms in good faith, Card My Yard will provide a 30-day notice to cure the default. If the franchisee does not cure the default within 30 days, Card My Yard has the option to assume interim management of the business.
If Card My Yard elects to assume interim management, the franchisee remains responsible for their obligations under the agreement. Card My Yard will not be liable for any debts, losses, costs, or expenses incurred during their management. Card My Yard has the right to charge a reasonable fee for their management services. The franchisee must indemnify Card My Yard against any claims, demands, judgments, fines, losses, liabilities, costs, amounts paid in settlement, and reasonable expenses, including attorney's fees, incurred during the interim management, unless these arise solely from Card My Yard's gross negligence or willful misconduct.
Upon termination or expiration of the agreement, the franchisee must cease operating the Card My Yard business and cannot represent themselves as a current or former franchisee. They must also immediately stop using the Card My Yard marks and confidential information, including signs and advertising materials. The franchisee must take necessary actions to cancel any assumed name registrations containing the Card My Yard mark and provide evidence of compliance within five days after termination.