What qualifications must the Principal Owner of a Card My Yard franchise meet?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
) You agree to maintain at all times during the term of this Agreement sufficient working capital to fulfill your obligations under this Agreement.
E. Your Management.
- (1) You agree to designate upon the execution of this Agreement, and to retain at all times during the term of this Agreement, an individual to serve as your Principal Owner. The Principal Owner must meet our qualifications and must be approved by us. 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.
- (3) The names of your Principal Owner and General Manager shall be listed in Exhibit D to this Agreement and you agree to keep such information current at all times during the term of this Agreement.
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 must meet Card My Yard's qualifications and be approved by them. The Principal Owner must be designated upon the execution of the Franchise Agreement and retained at all times during the term of the agreement. Unless a separate General Manager is approved, the Principal Owner must devote full time and best efforts to the supervision of the Card My Yard business. Without written consent from Card My Yard, the Principal Owner cannot engage in any business other than the operation of the Card My Yard business. The Principal Owner must also be empowered with full authority to act for the franchisee.
Before the Opening Date, the Principal Owner must successfully complete Card My Yard's initial online training program. Any successor or replacement Principal Owner must also successfully complete the online training program within a reasonable time after being designated, but no more than 60 days after their predecessor ceased to be employed or serve as Principal Owner. The Principal Owner must also attend periodic franchisee conventions, if Card My Yard chooses to conduct them. If the Principal Owner fails to satisfactorily complete the initial training program, and the franchisee fails to correct this within 90 days of written notice from Card My Yard, the Franchise Agreement may be terminated.
The name of the Principal Owner must be listed in Exhibit D to the Franchise Agreement, and the franchisee must keep this information current at all times. The franchisee must promptly notify Card My Yard in writing if the Principal Owner cannot continue or no longer qualifies to serve in that capacity, and must take corrective action within 30 days of such notice. During this 30-day period, the franchisee must provide for interim management of operations.
In practical terms, this means a prospective Card My Yard franchisee should be prepared to have their Principal Owner actively and fully involved in the business, to meet Card My Yard's standards, and to complete the required training. The franchisee should also be aware of the potential consequences of failing to maintain a qualified Principal Owner or to ensure they complete the necessary training.