What is the non-compete agreement for Owners of a Card My Yard franchise during the term of the agreement?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
nformation provide a competitive advantage, and that gaining access to them is a primary reason for entering into this Agreement. Accordingly, you and your Owners agree as follows:
- (1) With respect to you, during the term of this Agreement (or with respect to each of the Owners, for so long as such person satisfies the definition of "Owner" under this Agreement), except as otherwise approved in writing by us, neither you nor any of your Owners shall, directly or indirectly, for themselves or through, on behalf of, or in conjunction with any other person, legal entity or association:
- (a) Directly or indirectly divert, or attemptto divert, any business or customer of Card My Yard businesses to any competitor, or do or perform any other act injurious or prejudicial to the goodwill associated with the Marks and the System.
- (b) Except with respect to Card My Yard businesses operated under valid agreements with us, own, maintain, operate, engage in, or have any financial or beneficial interest in, advise, assist or make loans to, any business that 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 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 oth
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, during the term of the agreement, franchisees and their owners are restricted from engaging in activities that could harm the Card My Yard business. Specifically, they cannot divert business or customers to competitors, nor can they own, operate, or have a financial interest in any business similar to Card My Yard. This includes businesses offering yard greeting services, celebratory displays, balloon displays, or lighted displays.
The non-compete restrictions apply throughout the United States, its territories, commonwealths, or any other geographic area where Card My Yard or its affiliates have registered trademarks or operate businesses. This broad geographic scope means that franchisees and their owners cannot be involved in competitive businesses, even in locations where their specific franchise does not operate.
These restrictions are in place to protect Card My Yard's market position, goodwill, and confidential information. The FDD states that franchisees and owners receive valuable training and confidential information that provides a competitive advantage, making the non-compete agreement necessary to safeguard the franchisor's interests. Franchisees should carefully consider these restrictions and how they might impact future business opportunities before investing in a Card My Yard franchise.