Must the proposed transferee meet Card My Yard's then-current qualifications?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
(4) The proposed transferee must demonstrate to our satisfaction that it meets our then-current qualifications, and, at the transferee's expense, its Principal Owner, General Manager, and any other personnel we require shall complete any training programs then in effect for Card My Yard businesses upon such terms and conditions as we may reasonably require;
(5) The transferee shall, at its expense and within the time period we reasonably require, renovate, modernize and otherwise upgrade the Card My Yard business to conform to our then-current System image, standards and specifications, provided that this subsection XV.B(5) will be applicable only if you have not renovated, updated and upgraded the Card My Yard business pursuant to subsection VIII.D of this Agreement;
(6) The transferee shall enter into a written agreement, in a form satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all of your obligations, covenants and agreements under this Agreement;
(7) The transferee shall execute our then-current form of franchise agreement for a term ending on the expiration date of this Agreement (including any renewal terms provided by this Agreement).
The new franchise agreement shall supersede this Agreement in all respects and its terms may differ from the terms of this Agreement (except that the fees imposed on the transferee will not be greater than the fees that we then impose on similarly situated transferees), provided that the transferee shall not be required to pay an initial franchise fee.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a proposed transferee must demonstrate that they meet the then-current qualifications of Card My Yard. Additionally, the Principal Owner, General Manager, and any other personnel that Card My Yard requires must complete the training programs in effect for Card My Yard businesses. The transferee is responsible for covering the expenses associated with these training programs.
Furthermore, the transferee must renovate, modernize, and upgrade the Card My Yard business to meet the current system image, standards, and specifications. This requirement is only applicable if the transferor has not already completed these renovations, updates, and upgrades as outlined in subsection VIII.D of the agreement. The transferee is also required to enter into a written agreement that is satisfactory to Card My Yard, assuming full liability for all obligations under the existing franchise agreement from the date of transfer.
Finally, the transferee must execute Card My Yard's current form of franchise agreement, with the term ending on the original agreement's expiration date, including any renewal terms. While the terms of the new franchise agreement may differ from the original, the fees imposed on the transferee cannot be greater than those imposed on similarly situated transferees. However, the transferee will not be required to pay an initial franchise fee.