Can the Principal Owner of a Card My Yard franchise engage in other businesses besides the Card My Yard business?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless a separate General Manager is approved by us as described in Section VII.E(2), your Principal Owner must devote full time and best efforts to the supervision of the Card My Yard business(s) operated by you and your Affiliates.
Without our written consent, your Principal Owner shall not engage in any business other than the operation of your Card My Yard business(s).
Your Principal Owner and any General Manager whom we approve must be empowered with full authority to act for you.
- (2) Before the Opening Date you must designate, and all times thereafter retain, a General Manager who meets our qualifications to supervise the operation of your Card My Yard business.
Your Principal Owner may serve as the General Manager of your Card My Yard business, provided that he or she may not serve as the General Manager for more than one Card My Yard business at the same time.
Subject to our written consent, you may elect to designate an individual other than your Principal Owner for the position of General Manager.
Your General Manager must devote full time and best efforts to the supervision of the Card My Yard business operated by you and your Affiliates and, without our written consent, shall not engage in any other business.
You acknowledge and agree that the appointment of a General Manager will not relieve your Principal Owner of his or her supervisory responsibilities for the operation of your Card My Yard business.
You and your Principal Owner shall remain fully responsible for your General Manager's performance.
Each Card My Yard business must have a different General Manager.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the Principal Owner is generally required to devote their full time and best efforts to the Card My Yard business. Specifically, the FDD states that without Card My Yard's written consent, the Principal Owner cannot engage in any other business besides operating the Card My Yard franchise. This requirement ensures that the Principal Owner is fully dedicated to managing and growing the franchise.
However, there is an exception if a separate General Manager is approved by Card My Yard. In this case, the Principal Owner's role might be adjusted, but they still retain supervisory responsibilities. Even with a General Manager in place, the Principal Owner remains responsible for the General Manager's performance. The General Manager also must devote their full time and best efforts to the Card My Yard business and, without written consent from Card My Yard, cannot engage in any other business.
This policy is fairly common in franchising, as franchisors want to ensure that franchisees are focused on their brand and business model. For a prospective Card My Yard franchisee, this means that if you plan to be the Principal Owner, you should be prepared to commit your full working time to the business, unless you obtain written consent from Card My Yard to pursue other ventures or hire an approved General Manager. It is important to discuss this requirement with Card My Yard during your due diligence to understand the potential for exceptions and the process for obtaining approval.