Who owns the intellectual property rights to any Improvement developed by a Card My Yard franchisee?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
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, any Improvement developed by a franchisee, their employees, or owners in the operation or promotion of a Card My Yard business automatically becomes the sole property of Card My Yard. An "Improvement" is defined as any new concept, process, or enhancement. The franchisee must promptly notify Card My Yard of any Improvement and provide all necessary related information without expecting compensation.
Card My Yard gains complete ownership of all related patents, patent applications, and other intellectual property rights associated with the Improvement. Franchisees and their owners are required to assign any rights they have or may acquire in these Improvements to Card My Yard. This includes the right for Card My Yard to modify the Improvement. Franchisees also waive all rights of restraint and moral rights related to the Improvement.
Furthermore, franchisees and their owners must assist Card My Yard in securing and enforcing intellectual property rights to any Improvement across all countries. This includes executing necessary documentation. Franchisees irrevocably appoint Card My Yard as their agent and attorney-in-fact to execute and file any documentation to further the prosecution and issuance of patents or other intellectual property rights related to the Improvement. If any part of this agreement is deemed invalid or unenforceable, the franchisee grants Card My Yard a worldwide, perpetual, nonexclusive, fully paid license to use and sublicense the Improvement.