If a Card My Yard franchisee wants to transfer their franchise, what must they do?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
All Transferrees acquiring an existing Card My Yard business from a franchisee must sign our then-current Franchise Agreement within thirty (30) days of approval of the transfer by us, and payment of applicable transfer fee.
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;
(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;
(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);
(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;
(7) The transferee shall execute our then-current form of franchise agreement for a term ending on the expiration date of this Agreement (including any renewal terms provided by this Agreement).
The new franchise agreement shall supersede this Agreement in all respects and its terms may differ from the terms of this Agreement (except that the fees imposed on the transferee will not be greater than the fees that we then impose on similarly situated transferees), provided that the transferee shall not be required to pay an initial franchise fee.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their business must adhere to a specific process, and failure to do so will result in termination of the franchise and incur the then-current termination fees.
Specifically, any transferee acquiring an existing Card My Yard business from a franchisee must sign the then-current Franchise Agreement within 30 days of the transfer's approval by Card My Yard and after paying the applicable transfer fee. The franchisee (transferor) remains liable for all obligations to Card My Yard incurred before the transfer date. They must also secure a one-year tail on their insurance policies to cover any liabilities predating the transfer and execute any documents Card My Yard reasonably requests to evidence this liability.
Furthermore, the franchisee must pay Card My Yard a transfer fee equal to the greater of $3,000 or 5% of the sale/transfer price, whether paid in cash or other consideration. The transferor and its owners must also execute a general release of all claims against Card My Yard and its affiliates. The proposed transferee must meet Card My Yard's current qualifications, and their Principal Owner, General Manager, and any other required personnel must complete Card My Yard's training programs. The transferee is responsible for renovating and upgrading the Card My Yard business to meet the current system standards, if applicable, and must enter into a written agreement assuming full liability for all obligations under the Franchise Agreement. Finally, the transferee must execute Card My Yard's current form of franchise agreement for a term ending on the original agreement's expiration date, although the terms may differ, the transferee won't be required to pay an initial franchise fee.