Are Card My Yard Owners required to assign rights to improvements to the franchisor?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- D.
Improvements.
If you, your employees, or Owners develop any new concept, process or improvement in the operation or promotion of a Card My Yard business (an "Improvement"), you agree to promptly notify us and provide us with all necessary related information, without compensation.
Any such Improvement shall become our sole property and we shall be the sole owner of all related patents, patent applications, and other intellectual property rights.
You and your Owners hereby assign to us any rights you or they may have or acquire in the Improvements, including the right to modify the Improvement, and waive and/or release all rights of restraint and moral rights therein and thereto.
You and your Owners agree to assist us in obtaining and enforcing the intellectual
property rights to any such Improvement in any and all countries and further agree to execute and provide us with all necessary documentation for obtaining and enforcing such rights. You and your Owners hereby irrevocably designate and appoint us as your and their agent and attorney-in-fact to execute and file any such documentation and to do all other lawful acts to further the prosecution and issuance of patents or other intellectual property right related to any such Improvement. In the eventthatthe foregoing provisions of this Section XI.D. are found to be invalid or otherwise unenforceable, you and your Owners hereby grant to us a worldwide, perpetual, nonexclusive, fully paid license to use and sublicense the use of the Improvement to the extent such use or sublicense would, absent this Agreement, directly or indirectly infringe your or their rights therein.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if a franchisee, their employees, or owners develop any new concept, process, or improvement in the operation or promotion of a Card My Yard business, they must promptly notify Card My Yard and provide all necessary related information without compensation.
Any such improvement becomes the sole property of Card My Yard, which will be the sole owner of all related patents, patent applications, and other intellectual property rights. Franchisees and their owners must assign to Card My Yard any rights they may have or acquire in the improvements, including the right to modify the improvement, and waive all rights of restraint and moral rights.
Franchisees and their owners also agree to assist Card My Yard in obtaining and enforcing the intellectual property rights to any such improvement in any and all countries and further agree to execute and provide Card My Yard with all necessary documentation for obtaining and enforcing such rights. They irrevocably designate and appoint Card My Yard as their agent and attorney-in-fact to execute and file any such documentation and to do all other lawful acts to further the prosecution and issuance of patents or other intellectual property right related to any such improvement.
In the event that these provisions are found to be invalid or otherwise unenforceable, franchisees and their owners grant to Card My Yard a worldwide, perpetual, nonexclusive, fully paid license to use and sublicense the use of the improvement to the extent such use or sublicense would, absent the agreement, directly or indirectly infringe their rights.