Can Card My Yard make decisions that apply differently to different franchisees?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) You and your Owners acknowledge that we will have the right, in our sole discretion, to reduce the scope of any covenant set forth in this Section XI.C. without your or their consent, effective immediately upon notice to you; and you and your Owners agree to promptly comply with any covenant as modified.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Card My Yard has the right to reduce the scope of any covenant set forth in Section XI.C of the agreement without the franchisee's consent. This change is effective immediately upon notice to the franchisee, who must then comply with the modified covenant.
This clause grants Card My Yard significant unilateral power to alter the terms of the agreement, potentially creating different obligations or restrictions for different franchisees. For example, Card My Yard could reduce the geographic scope of a non-compete agreement for one franchisee but not for another. This could create an uneven playing field among franchisees, where some have more freedom to operate or pursue other business ventures than others.
Prospective franchisees should carefully consider the implications of this clause, as it gives Card My Yard considerable flexibility to modify the agreement's terms during the franchise term. It would be prudent to seek clarification from Card My Yard regarding the circumstances under which they might exercise this right and how they ensure fairness and consistency across the franchise system when making such modifications. Franchisees in Wisconsin have additional protections under the Wisconsin Fair Dealership Law, which supersedes any inconsistent provisions in the franchise agreement.