Does the Card My Yard non-compete agreement apply if I am employed by a Card My Yard franchisee?
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:
- 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 the 2025 Card My Yard Franchise Disclosure Document, if you are employed by or associated with a Card My Yard franchisee, you are subject to certain covenants not to compete. During your employment and for two years after your employment ends or the franchise agreement terminates, expires, or is transferred, you are restricted from engaging in activities that compete with the Card My Yard system. This restriction applies unless you obtain prior written consent from Card My Yard or are permitted under other valid franchise agreements.
The non-compete agreement aims to protect the goodwill of the Card My Yard system and is in consideration for the confidential information disclosed to you during your employment. The agreement specifies that you cannot divert business opportunities or customers to competitors, nor can you own, operate, or have a financial interest in any similar business offering yard greeting services or celebratory displays.
The restrictions apply within the Franchise Location, the Protected Area, or within a 25-mile radius of the Franchise Location or any existing Card My Yard business. This means that as an employee, your ability to work for a competing business or start your own in the same industry is limited both during and for a period after your employment with the Card My Yard franchisee. This agreement ensures that confidential information remains protected and that unfair competition is avoided, safeguarding the interests of the Card My Yard franchise system.