Where is the Card My Yard Protected Area defined in the Franchise Agreement?
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 specific boundaries of a franchisee's Protected Area are detailed in Exhibit C of the Franchise Agreement. The Protected Area is not unilaterally determined by Card My Yard but is agreed upon between the franchisor and the franchisee. This area is typically defined by zip codes, with an anticipated population of no less than 30,000 residents.
The determination of the zip codes included in a Card My Yard Protected Area is based on several factors. These include 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. These criteria suggest that Card My Yard aims to create territories that are both viable in terms of customer base and manageable in terms of operational logistics for the franchisee.
It's important to note that if the U.S. Postal Service modifies zip codes within a franchisee's Protected Area, the boundaries of the Protected Area automatically adjust to match the revised zip code boundaries. This could result in a smaller geographic area or a reduced population, and the franchisee will not be entitled to any compensation as a result of such modification. While franchisees are granted a Protected Area, the FDD also clarifies that franchisees do not receive an exclusive territory, and may face competition from other franchisees, outlets that Card My Yard owns, or other channels of distribution or competitive brands that Card My Yard controls.