What option does Card My Yard have regarding advertising and sales promotion materials after termination?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (8) Promptly furnish to us an itemized list of all advertising and sales promotion materials bearing the Marks, whether located at the Card My Yard business or at any other location under your control.
We will have the right to inspect these materials and the option, exercisable within thirty (30) days after such inspection, to purchase any or all of the materials at your cost.
Materials we do not purchase cannot be used by you or any other person for any purpose unless authorized in writing by us.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, following the termination of the franchise agreement, franchisees must provide an itemized list of all advertising and sales promotion materials bearing Card My Yard's marks. Card My Yard has the option to inspect these materials and then purchase any or all of them from the franchisee at the franchisee's cost. This option is exercisable within thirty days after the inspection.
If Card My Yard chooses not to purchase the materials, the franchisee is prohibited from using them for any purpose unless Card My Yard provides written authorization. This ensures that after termination, franchisees cannot continue to benefit from the Card My Yard brand without permission, protecting the brand's integrity and reputation.
This clause is typical in franchise agreements to ensure brand consistency and prevent potential misuse of the franchisor's marketing materials by former franchisees. For a prospective Card My Yard franchisee, this means understanding that upon termination, they may need to sell their advertising materials back to Card My Yard or dispose of them properly, and they cannot repurpose them for any other business without explicit approval.