Is Card My Yard obligated to protect a franchisee's right to use the trademarks?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
We are not obligated to protect your rights to use the Marks or to protect you against claims of infringement or unfair competition. We are not obligated to participate in your defense and/or indemnify you for expenses or damages if you are party to an administrative or judicial proceeding involving the Marks if the proceeding is resolved unfavorable to you.
Source: Item 13 — TRADEMARKS (FDD pages 46–48)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Card My Yard is not obligated to protect a franchisee's right to use the trademarks. The FDD states explicitly that Card My Yard is not required to take action against infringement or unfair competition, nor are they required to participate in a franchisee's defense or cover expenses if a franchisee is involved in legal proceedings related to the trademarks that are resolved unfavorably for the franchisee. This means the franchisee bears the risk and cost of defending their right to use the Card My Yard trademarks.
This lack of obligation could have significant implications for prospective franchisees. If another business infringes on the Card My Yard trademark in a franchisee's territory, the franchisee would likely need to take legal action themselves to protect their business, incurring legal fees and other expenses. Card My Yard has sole discretion to take action they deem appropriate and the right to exclusively control any litigation from any infringement, challenge, or claim concerning any of the Marks. Franchisees are required to notify Card My Yard of any infringement or challenges to the trademarks and must assist Card My Yard in protecting the trademarks.
In the event of trademark disputes, Card My Yard retains control over legal proceedings. Franchisees are obligated to inform Card My Yard of any trademark infringements or challenges and must assist in protecting the trademarks. This includes signing documents and providing assistance as deemed necessary by Card My Yard's counsel. Franchisees are prohibited from taking any actions that could harm the validity of Card My Yard's trademark rights.
While Card My Yard is not obligated to protect a franchisee's right to use the trademarks, the company does state that they have taken action against competitors in the past. For example, CMY Holdco, LLC, filed suit against a competitor in Bethesda, Maryland on February 10, 2021, for operating under the trade names "Card Your Yard" and "Card On Your Yard". The parties resolved the dispute via a Settlement Agreement executed in July of 2021, which prohibits the competitor from operating under those names in the future.