How long does a Card My Yard franchisee have to transfer their interest after notice of permanent disability?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Upon your permanent disability (if you are a natural person) or the permanent disability of any Owner who is a natural person, we may, in our sole discretion, require that person's interest to be transferred to a third party in accordance with the conditions described in this Article XV. within six (6) months after notice to you. "Permanent disability" shall mean any physical, emotional or mental injury, illness or incapacity which would prevent a person from performing the obligations set forth in this Agreement or in the guaranty made part of this Agreement for at least ninety (90) consecutive days and from which condition recovery within ninety (90) days from the date of determination of disability is unlikely.
Permanent disability shall be determined by a licensed practicing physician selected by us, upon examination of the person, or if the person refuses to submit to an examination, then such person automatically shall be deemed permanently disabled as of the date of such refusal for the purpose of this Section XV.E.
We will pay the costs of any examination required by this Section XV.E.(2).
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 (or an owner who is a natural person) experiences permanent disability, Card My Yard has the option to require the transfer of that person's interest to a third party. This transfer must occur within six months after Card My Yard provides notice to the franchisee.
The FDD defines "permanent disability" as a physical, emotional, or mental condition that prevents the person from fulfilling their obligations under the Franchise Agreement or any related guaranty for at least 90 consecutive days, with recovery within another 90 days being unlikely.
To determine permanent disability, Card My Yard will select a licensed physician to examine the person in question. If the person refuses to undergo the examination, they will automatically be deemed permanently disabled from the date of refusal for the purposes of this section of the agreement. Card My Yard will cover the costs associated with this examination.
This clause protects Card My Yard by ensuring that a disabled franchisee's business interest is transferred to a capable party, maintaining the operational standards and brand integrity of the franchise. It also outlines a clear process for determining disability and managing the transfer of ownership, providing a structured approach to handling such sensitive situations.