Are past officers of the franchisee's company included in the Card My Yard general release?

According to the 2025 Card My Yard Franchise Disclosure Document, when transferring ownership of a franchise, the transferor, including its owners, must execute a general release. This release covers any claims against Card My Yard, its affiliates, and their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, both past and present, in their corporate and individual capacities. This includes claims arising from the Franchise Agreement or any other agreement with Card My Yard or its affiliates, as well as claims under federal, state, or local laws, rules, and regulations.

In practical terms, this means that a franchisee selling their Card My Yard business must ensure that they and their owners (if applicable) sign a release that prevents them from suing Card My Yard for any reason. This release is comprehensive, covering a wide range of potential claims and individuals associated with Card My Yard. The release must be in a form that is satisfactory to Card My Yard.

For a prospective franchisee, this highlights the importance of understanding all potential claims before selling their franchise. They should consult with legal counsel to fully understand the implications of the general release. This requirement is a standard practice in franchising, designed to protect the franchisor from future litigation by former franchisees.