How long do the confidentiality covenants last for a Card My Yard franchise?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
Our Confidential Information is proprietary, includes trade secrets owned by us and our Affiliates, and is disclosed to you solely on the condition that you agree, and you do hereby agree, that you: (i) will not use the Confidential Information in any other business or capacity; (ii) will maintain the confidentiality of the Confidential Information during and after the term of this Agreement; (iii) will not make unauthorized copies of any portion of the Confidential Information; and (iv) will adopt and implement all reasonable procedures that we prescribe from time to time to prevent the unauthorized use or disclosure of the Confidential Information, including, without limitation, restrictions on disclosure of the Confidential Information to Card My Yard business personnel and others.
These covenants shall survive the expiration, termination or transfer of this Agreement or any interest herein and shall be perpetually binding upon you and each of the Owners.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees and their owners must maintain the confidentiality of the franchisor's confidential information both during the term of the Franchise Agreement and after its expiration, termination, or transfer. This obligation is perpetually binding on the franchisee and their owners. This means that the duty to protect Card My Yard's confidential information extends indefinitely, even after the franchise relationship ends.
In addition to the perpetual confidentiality covenant, there are also non-competition covenants that apply. During the term of the agreement, franchisees and their owners are restricted from engaging in any business that is the same as or similar to a Card My Yard business, or from diverting business or customers to a competitor. After the termination, expiration, or transfer of the Franchise Agreement, this non-compete restriction continues for a period of two years. However, this two-year restriction is limited geographically to the franchise location, the protected area, or within a 25-mile radius of any Card My Yard business.
These covenants are designed to protect Card My Yard's goodwill and business interests by preventing franchisees from using confidential information or competing unfairly, both during and after the franchise relationship. Prospective franchisees should carefully consider the scope and duration of these covenants, as they could impact their future business activities. Franchisees should seek legal counsel to fully understand their obligations under these covenants.