How are the Protected Area boundaries for a Card My Yard franchise defined?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
If you remain in compliance with the Franchise Agreement and any other agreements you have with us or our affiliates, we and our affiliates will not establish, or authorize anyone except you to establish, a Card My Yard business in your Protected Area during the term of the Franchise Agreement. The Protected Area boundaries will be agreed upon by you and us and will be defined by zip codes. We anticipate that the Protected Area for most franchise locations will consist of one or more contiguous zip codes and include a population of no lessthan 30,000.
The determination of the zip codes to be included in your Protected Area will be made on a case-by-case basis based on various factors, including (i) the population in the surrounding area; (ii) driving distance within the Protected Area; (iii) proximity to franchisee's location; and (iv) proximity to residential areas, businesses and other potential customer sources. The Protected Area will be described in Exhibit C of the Franchise Agreement.
If the U.S. Postal Service modifies one or more of the zip codes comprising any part of your Protected Area then your Protected Area boundaries under your franchise agreement will be automatically modified to match the
revised zip code boundaries established by the U.S. Postal Service. In such event, your revised Protected Area may include fewer people and/or a smaller geographic area than before, and you will not be entitled to any compensation as a result of such modification.
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Source: Item 12 — TERRITORY (FDD pages 43–46)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the boundaries of a franchisee's Protected Area are defined by zip codes. These boundaries are determined through an agreement between the franchisee and Card My Yard, and are detailed in Exhibit C of the Franchise Agreement. Card My Yard anticipates that most Protected Areas will include one or more contiguous zip codes, encompassing a population of at least 30,000 residents.
The determination of specific zip codes included in a Protected Area is made on a case-by-case basis, considering factors such as the population in the surrounding area, driving distance within the Protected Area, proximity to the franchisee's location, and proximity to residential areas, businesses, and other potential customer sources. This individualized approach ensures that each franchisee has a viable territory tailored to local market conditions.
It's important to note that if the U.S. Postal Service modifies zip code boundaries within a franchisee's Protected Area, the Protected Area boundaries under the franchise agreement will automatically adjust to match the revised zip code boundaries. This means a franchisee's territory could potentially shrink, resulting in fewer people or a smaller geographic area, without any compensation from Card My Yard. While franchisees receive a Protected Area, it is not an exclusive territory, and franchisees may face competition from other franchisees, company-owned outlets, or other channels of distribution.