For how long after the termination of the Card My Yard agreement are franchisees prohibited from soliciting Card My Yard employees?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to protect the goodwill of the System, and in consideration for the disclosure of the Confidential Information to you, you agree that, during the term of your association with or employment by Franchisee, and for a period of two (2) years following the earlier of (i) the termination thereof, or (ii) the termination, expiration or transfer of Franchisee's interest in the Franchise Agreement, you will not, without our prior written consent or as permitted under other valid Franchise Agreements for Card My Yard businesses between Franchisee and us:
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
The 2025 Card My Yard Franchise Disclosure Document outlines certain restrictions regarding franchisee activities after the termination of their agreement. Specifically, to protect the goodwill of the Card My Yard system and in exchange for confidential information, franchisees agree to certain covenants. These covenants include restrictions on soliciting employees.
According to the FDD, during the term of association with or employment by the franchisee, and for a period of two years following the termination, expiration, or transfer of the franchise agreement, the franchisee is restricted from certain activities. These restrictions are in place unless the franchisee obtains prior written consent from Card My Yard or as permitted under other valid franchise agreements between the franchisee and Card My Yard.
In practical terms, this means that for two years after leaving the Card My Yard franchise system, a former franchisee cannot actively recruit or attempt to hire current Card My Yard employees. This non-solicitation clause is designed to prevent franchisees from unfairly taking advantage of the knowledge and skills of existing Card My Yard personnel to benefit a competing business. Franchisees should be aware of these limitations and ensure they do not violate these terms, as doing so could result in legal action from Card My Yard.