factual

Which obligations survive the termination or expiration of the Card My Yard Franchise Agreement?

Card_My_Yard Franchise · 2025 FDD

Answer from 2025 FDD Document

esponsible for any costs, expenses, damages or other liabilities incurred by you or us as a result of, or in connection with, your failure to comply with any PCI standards.

  • G. Powers of Attorney. You hereby appoint us as your true and lawful attorney-in-fact, with full power and authority (i) to assign to us upon the termination or expiration of this Agreement (a) all rights to the telephone numbers of the Card My Yard business, any related business listings, and all rights to any website listings or services, search engines or systems, and any other business listings related to the Card My Yard business and (b) at our option, your interest in any lease for the Franchise Location and any equipment used in the operation of the Card My Yard business; and (ii) to obtain any and all returns and reports related to the Card My Yard business that you file with any local, state or federal taxing authority. Such powers of attorney shall survive the expiration or termination of this Agreement, and you agree to execute such forms and documents as we deem necessary to appoint us your true and lawful attorney-in-fact with full power and authority for the foregoing purposes.
  • H. Continuing Obligations. You and your Owners make the foregoing representations, warranties and covenants understanding that such representations, warranties and covenants are continuing obligations. You agree to cooperate with us to verify your and your Owners' continuing compliance with such representations, warranties and covenants. Any failure to comply with these representations, warranties and covenants will constitute a material event of default under this Agreement.

VIII. OPERATIONS

A. Training. Your Principal Owner and General Manager must successfully complete our initial online training program before the Opening Date. Any successor or replacement Principal Owner or General Manager must successfully complete our initial online training program within a reasonable time after such persons are designated, provided that each successor or replacement must successfully complete training no more than sixty (60) days after the date on which his or her predecessor ceased to be employed by you (or ceased to serve as Principal Owner, as applicable). These persons, and any of your other personnel whom we may designate, must complete any additional training that we may require from time to time. In addition, we may, at our option, conduct periodic franchisee conventions at a location designated by us, and your Principal Owner and/or General Manager must attend such conventions. At our option, we may certify your Principal Owner or General Manager (following their completion of all applicable training as required by us) as a "Certified Trainer" authorized to provide and conduct one or more designated training programs (as determined by us) for new or replacement employees at your Card My Yard business; provided, however, that we reserve the right to test any employees trained by a Certified Trainer and to require any Certified Trainer and any of your employees to successfully complete additional training programs conducted by us from time to time.

Source: Item 23 — RECEIPTS (FDD pages 84–259)

What This Means (2025 FDD)

According to Card My Yard's 2025 Franchise Disclosure Document, certain obligations survive the termination or expiration of the Franchise Agreement. Card My Yard retains the power of attorney to manage telephone numbers, business and website listings, and any leases or equipment associated with the Card My Yard business. This means that even after the agreement ends, Card My Yard can control these assets.

Additionally, the franchisee's representations, warranties, and covenants are considered continuing obligations, requiring ongoing cooperation to verify compliance. Failure to comply with these continuing obligations constitutes a material default of the agreement.

Furthermore, franchisees are restricted from engaging in any competitive business within a specific scope for a defined period. This non-compete obligation is limited to operations at the franchise location, within the protected area, or within a 25-mile radius of the franchise location or any existing Card My Yard business for two years following termination, expiration, or transfer of the Franchise Agreement. These measures protect Card My Yard's market and brand integrity even after a franchise ceases operation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.