Does the non-solicitation clause in the Card My Yard agreement apply to the franchisee's officers?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's Undertaking
Franchisee agrees to make all commercially reasonable efforts to ensure that you act as required by this Agreement.
We and Franchisee have agreed on the importance of restricting the use, access and dissemination of the Confidential Information, and Franchisee therefore has agreed to obtain from you a written agreement protecting the Confidential Information and further protecting the System against unfair competition.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
Based on the 2025 Card My Yard Franchise Disclosure Document, the franchisee agrees to make all commercially reasonable efforts to ensure that they act as required by the agreement. This implies that the franchisee has a responsibility to ensure compliance with the agreement's terms, which would include the non-solicitation clauses.
While the document does not explicitly state that the non-solicitation clause applies to the franchisee's officers, it does state that the franchisee must obtain a written agreement protecting the confidential information and further protecting the system against unfair competition from those employed by or associated with the Franchisee. This written agreement would include non-compete clauses.
To fully understand the scope and applicability of the non-solicitation clause to officers, a prospective Card My Yard franchisee should seek clarification from the franchisor regarding the specific individuals covered by the non-solicitation agreement and the measures required to ensure their compliance.