What is the length of the initial franchise term for a Card My Yard franchise?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section IV.A | Five (5) year initial term. |
| b. Renewal or extension of the term | Section IV.B | Three additional 5-year terms. |
| c. Requirements for franchisee to renew or extend | Section IV.B | Your renewal right permits you to remain as a franchisee after the initial term of your franchise agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal, including signing our then-current Franchise Agreement, which may contain materially different terms and conditions and different territory boundaries from your original contract, except that the fees on renewal will not be greater than the fees that we then impose on similarly situated renewing franchisees. |
| Other | ||
| requirements | ||
| are: | ||
| Give written notice; update required items; | ||
| not | ||
| be | ||
| in | ||
| default; | ||
| pay | ||
| all | ||
| money | ||
| owed; | ||
| retain | ||
| right to Location; pay us a renewal fee; sign | ||
| general release; comply with then-current | ||
| qualifications and training requirements. |
Source: Item 17 — RENEWAL TERMINATION TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 51–55)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the initial franchise term is five years. Specifically, Section IV.A of the Franchise Agreement dictates this term length. This means that a new franchisee will operate their Card My Yard business under the Franchise Agreement for a period of five years before needing to consider renewal.
After the initial five-year term, the franchisee has the option to renew for three additional five-year terms, as detailed in Section IV.B of the Franchise Agreement. However, to renew, the franchisee must meet several conditions. These conditions include providing written notice, updating any required items, not being in default, paying all outstanding money owed, retaining the right to the location, paying a renewal fee, signing a general release, and complying with the then-current qualifications and training requirements.
It is important to note that renewing the Card My Yard franchise requires signing the then-current Franchise Agreement, which, according to the FDD, may contain materially different terms and conditions and different territory boundaries from the original contract. The FDD assures that the fees on renewal will not be greater than the fees that Card My Yard then imposes on similarly situated renewing franchisees. Prospective franchisees should carefully consider these renewal terms and potential changes to the agreement before investing in a Card My Yard franchise.