What happens to the non-disclosure obligations if the Card My Yard Franchise Agreement is transferred?

According to the 2025 Card My Yard Franchise Disclosure Document, if a franchisee's interest in the Franchise Agreement is transferred, their obligations regarding confidential information and non-competition continue for a period of two years following the transfer. This means that even after a Card My Yard franchise is sold to a new owner, the original franchisee and their associated employees remain bound by the confidentiality and non-compete agreements they initially signed. These obligations prevent them from disclosing sensitive business information or engaging in competitive activities that could harm the Card My Yard system.

The agreement specifies that during this two-year period, the non-compete restrictions are limited to operations at the franchise location, within the protected area, or within a 25-mile radius of either the franchise location or any existing or under-construction Card My Yard business. This geographic limitation ensures that the restrictions are reasonable and protect the brand's interests without unduly limiting the former franchisee's ability to pursue other business ventures outside of the immediate Card My Yard market.

Furthermore, any employee associated with the franchisee is also subject to these restrictions. To protect the goodwill of the Card My Yard system and in consideration for the disclosure of confidential information, employees agree to a two-year non-compete period following the termination, expiration, or transfer of the franchise agreement. This measure aims to prevent individuals with inside knowledge of Card My Yard's operations from using that information to compete against the franchise system, ensuring the continued success and integrity of the Card My Yard brand.