If a Card My Yard franchisee wishes to transfer their interest, to whom should they apply for consent?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. By You and Your Owners. You acknowledge that the rights and duties set forth in this Agreement are personal to you, and that we have granted you rights under this Agreement in reliance on your business skill, financial capacity and personal character and that of your Owners. Accordingly, neither you nor any of your Owners, nor any of your or their permitted successors or assigns, shall sell, assign, transfer, convey, give away, pledge, mortgage or otherwise dispose of or encumber any direct or indirect interest in this Agreement (including any zip codes or other partial territorial rights under this Agreement), in the Card My Yard business or the assets of such business, or in you without our prior written consent. Any purported assignment or transfer, by operation of law or otherwise, made in violation of this Agreement shall be null and void and shall constitute a material breach of this Agreement. If you wish to transfer all or part of your interest in the Card My Yard business or this Agreement, or if you or an Owner wishes to transfer any ownership interest in you, the transferor shall apply to us for our consent. We will not unreasonably withhold our consent but may require any or all of the following as conditions of our consent:
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 wishes to transfer all or part of their interest in the Card My Yard business or the Franchise Agreement, they must apply to CMY Franchising, LLC for consent. The document states that the rights and duties within the agreement are personal to the franchisee, and Card My Yard has granted these rights based on the franchisee's business skill, financial capacity, and personal character.
The FDD specifies that neither the franchisee nor their owners can sell, assign, transfer, convey, give away, pledge, mortgage, or otherwise dispose of any direct or indirect interest in the agreement, the Card My Yard business, or its assets without prior written consent from CMY Franchising, LLC. Any attempt to do so without consent is considered a material breach of the agreement and will be void.
While Card My Yard will not unreasonably withhold consent, they may require certain conditions to be met. These conditions include satisfying all accrued monetary obligations, ensuring the franchisee is not in default of any agreements, and that the franchisee has complied with all terms and conditions of their agreements. This ensures that the franchisee is in good standing before transferring their interest.