What radius around a Card My Yard franchise location is included in the non-compete agreement?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
itten consent or as permitted under other valid Franchise Agreements for Card My Yard businesses between Franchisee and us:
- a. Directly or indirectly divert, or attempt to divert any business opportunity or customer of Card My Yard businesses to any competitor; and
- b. Directly or indirectly, for yourself or through, on behalf of, or in conjunction with any other person, persons, partnership, corporation, limited liability company, or other association or entity, own, maintain, operate, engage in or have any financial or beneficial interest in, advise, assist or make loans to, any business which is the same as or similar to a Card My Yard business (including any business that offers yard greeting services or other celebratory display items or services of any kind, including but not limited to, balloon displays, lighted displays, etc.) and which is, or is intended to be, located within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which we or our Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks; provided that during the two year-period following termination, expiration or transfer of the Franchise Agreement, the non-compete restrictions shall be limited to operations: (i) at the Franchise Location, (ii) within the Protected Area, (iii) within a twenty-five (25)-mile radius of the Franchise Location, or (iv) within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction.
Franchisee's Undertaking
Franchisee agrees to make all commercially reasonable efforts to ensure that you act as required by this Agreement.
Miscellaneous
1. You agree that:
- a. Each of the covenants herein contain reasonable limitations as to time, geographical area, and scope of activity to be restrained and do not impose a greater restraint than is necessary to protect the goodwill of the System or our other business interests.
- b. Each of the foregoing covenants shall be construed as independent of any other covenant or provision of this Agreement. If all or any portion of a covenant in this Agreement is held unreasonable or unenforceable by a court or agency having valid jurisdiction in any unappealed final decision to which we is a party, you agree to be bound by any lesser covenant subsumed within the terms of such covenant that imposes the maximum duty permitted by law, as if the resulting covenant were separately stated in and made a part of this Agreement.
- c.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, during the two-year period following the termination, expiration, or transfer of the Franchise Agreement, the non-compete restrictions include operations within a twenty-five (25)-mile radius of the Franchise Location. This restriction also applies to operations within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction.
This means that if a franchisee leaves the Card My Yard system, they cannot operate a similar business within 25 miles of their former location or any other existing or planned Card My Yard location. This restriction is in place to protect Card My Yard's market share and prevent former franchisees from directly competing with the brand using knowledge gained during their time as a franchisee.
The non-compete agreement also specifies that franchisees cannot directly or indirectly divert business opportunities or customers of Card My Yard to any competitor. They are also prohibited from owning, maintaining, operating, or having a financial interest in any business that is the same as or similar to Card My Yard, including businesses offering yard greeting services or other celebratory display items such as balloon displays or lighted displays. This broad definition ensures that franchisees cannot circumvent the non-compete agreement by offering similar services under a different business name.
These restrictions apply within the United States, its territories, or any other country where Card My Yard or its affiliates have used, sought registration of, or registered their trademarks, or operate or license others to operate a business under similar marks. The franchisor also retains the right to reduce the scope of any covenant set forth in this section without the franchisee's consent, effective immediately upon notice.