Can Card My Yard offer its securities privately?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
A. By Us. We will have the right to transfer or assign this Agreement and all or any part of our rights or obligations under this Agreement to any person or legal entity without your consent, and upon such transfer or assignment, the transferee or assignee shall be solely responsible for all our obligations arising subsequent to the transfer or assignment. Without limitation of the foregoing, we may sell our assets to a third party; may offer our securities privately or publicly; may merge with or, acquire other corporations, or may be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard Franchise Disclosure Document, Card My Yard has the right to offer its securities privately. This means Card My Yard can sell ownership shares in the company to select individuals or groups without making the offer available to the general public.
For a prospective franchisee, this clause primarily affects the long-term stability and potential changes in ownership or control of the Card My Yard franchise system. If Card My Yard offers its securities privately, it could lead to an influx of capital that could be used to improve the franchise system, or it could result in a change in leadership or strategic direction if new investors acquire a significant stake in the company.
It is important to note that this right does not require Card My Yard to seek the franchisee's consent. The document states that Card My Yard may undertake actions such as selling assets, offering securities, merging with other corporations, or undergoing financial restructuring without the franchisee's approval. Franchisees should stay informed about any such changes, as they could impact the franchise system and their individual Card My Yard business.