For how long after the termination of a Card My Yard franchise agreement does the non-compete restriction apply?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
itten consent or as permitted under other valid Franchise Agreements for Card My Yard businesses between Franchisee and us:
- a. Directly or indirectly divert, or attempt to divert any business opportunity or customer of Card My Yard businesses to any competitor; and
- b. Directly or indirectly, for yourself or through, on behalf of, or in conjunction with any other person, persons, partnership, corporation, limited liability company, or other association or entity, own, maintain, operate, engage in or have any financial or beneficial interest in, advise, assist or make loans to, any business which is the same as or similar to a Card My Yard business (including any business that offers yard greeting services or other celebratory display items or services of any kind, including but not limited to, balloon displays, lighted displays, etc.) and which is, or is intended to be, located within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which we or our Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks; provided that during the two year-period following termination, expiration or transfer of the Franchise Agreement, the non-compete restrictions shall be limited to operations: (i) at the Franchise Location, (ii) within the Protected Area, (iii) within a twenty-five (25)-mile radius of the Franchise Location, or (iv) within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees are subject to certain non-compete restrictions following the termination, expiration, or transfer of their Franchise Agreement. Specifically, for a period of two years, franchisees are restricted from engaging in any business that is the same as or similar to a Card My Yard business. This includes businesses offering yard greeting services or other celebratory display items, such as balloon or lighted displays.
The geographic scope of these restrictions during the two-year period is limited to: the Franchise Location, the Protected Area, within a 25-mile radius of the Franchise Location, or within a 25-mile radius of any existing or under-construction Card My Yard business. This means that after leaving the Card My Yard system, a former franchisee cannot immediately set up a competing yard greeting business in close proximity to existing Card My Yard operations.
These non-compete terms are designed to protect Card My Yard's business interests, goodwill, and the integrity of its system. The franchise agreement specifies that these covenants contain reasonable limitations regarding time, geographical area, and scope of activity, ensuring they do not impose a greater restraint than necessary to protect the Card My Yard brand. Prospective franchisees should carefully consider these post-term restrictions and how they might impact their future business endeavors after leaving the Card My Yard franchise system.