What happens if a Card My Yard franchisee transfers or attempts to transfer the franchise?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
If you seek to transfer or resell your business, failure to follow this process will incur the then-current termination fees and result in termination of your franchise;
(7) If you or any of your Owners transfer or attempt to transfer any rights or obligations under this Agreement or any interest in you or the Card My Yard business contrary to the terms of this Agreement, or if a transfer upon death or permanent disability is not made in accordance with Section XV.E.;
(9) You must pay us a transfer fee in an amount equal to the greater of: (a) $3,000, or (b) 5% of the applicable sale/transfer price (whether for cash or other consideration);
(8) The transferor shall remain liable for all of its obligations to us under this Agreement incurred prior to the effective date of the transfer, shall obtain a one-year tail on each of its insurance policies to cover any liabilities that may have been incurred prior to the effective date of the transfer, and shall execute any and all instruments reasonably requested by us to evidence such liability;
(3) The transferor and its owners,if applicable, shall have executed a general release, in a form satisfactory to us, of any and all claims, against us and our Affiliates, our and their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants and employees, past and present, in their corporate and individual capacities,including, without limitation, claims arising under this Agreement and any other agreement with us or our Affiliates, and under federal, state or local laws, rules, and regulations or orders;
(4) The proposed transferee must demonstrate to our satisfaction that it meets our then-current qualifications, and, at the transferee's expense, its Principal Owner, General Manager, and any other personnel we require shall complete any training programs then in effect for Card My Yard businesses upon such terms and conditions as we may reasonably require;
(5) The transferee shall, at its expense and within the time period we reasonably require, renovate, modernize and otherwise upgrade the Card My Yard business to conform to our then-current System image, standards and specifications, provided that this subsection XV.B(5) will be applicable only if you have not renovated, updated and upgraded the Card My Yard business pursuant to subsection VIII.D of this Agreement;
(6) The transferee shall enter into a written agreement, in a form satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all of your obligations, covenants and agreements under 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 attempts to transfer any rights or obligations under the Franchise Agreement, or any interest in the Card My Yard business, contrary to the terms of the agreement, it constitutes a breach of the agreement. This can lead to termination of the franchise.
To properly transfer a Card My Yard franchise, the franchisee must adhere to a specific process. The franchisee must pay a transfer fee to Card My Yard, which is the greater of $3,000 or 5% of the sale/transfer price. The franchisee must also remain liable for all obligations incurred prior to the transfer date and obtain a one-year tail on their insurance policies to cover any prior liabilities. The franchisee is required to execute any instruments requested by Card My Yard to evidence such liability. The transferor and its owners must also execute a general release of any claims against Card My Yard and its affiliates.
The proposed transferee must meet Card My Yard's qualifications and complete any required training programs. The transferee must renovate the Card My Yard business to conform to the current system standards, unless the business has already been recently updated. The transferee must also enter into a written agreement assuming full liability for all obligations under the Franchise Agreement and execute Card My Yard's current form of franchise agreement for a term ending on the original agreement's expiration date. Failure to follow this process will incur the then-current termination fees and result in termination of your franchise.