What instruments am I required to deliver to Card My Yard at the closing of the purchase?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
At the closing, you agree to deliver instruments transferring to us: (i) good and merchantable title to the assets purchased, free and clear of all liens and encumbrances, with all sales and other transfer taxes paid by you; and (ii) all licenses and permits of the Card My Yard business which may be assigned or transferred.
If you cannot deliver clear title to all of the purchased assets, or if there are other unresolved issues, the closing of the sale will be accomplished through an escrow.
You and your Owners further agree to execute general releases, in form satisfactory to us, of any and all claims against us and our subsidiaries, shareholders, officers, directors, employees, agents, successors and assigns.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, at the closing of a purchase, you must deliver instruments transferring good and merchantable title to the assets purchased, free and clear of all liens and encumbrances, with all sales and other transfer taxes paid by you. You must also deliver all licenses and permits of the Card My Yard business which may be assigned or transferred.
Additionally, you and your Owners must execute general releases, in a form satisfactory to Card My Yard, of any and all claims against Card My Yard and its subsidiaries, shareholders, officers, directors, employees, agents, successors, and assigns. If you cannot deliver clear title to all of the purchased assets, or if there are other unresolved issues, the closing of the sale will be accomplished through an escrow.
These requirements ensure that Card My Yard receives clear ownership of the assets and that all legal and financial obligations related to the transfer are properly handled. The general releases protect Card My Yard from future claims or liabilities related to the franchise. The escrow process provides a mechanism to resolve any outstanding issues and ensure a smooth transfer of ownership.