What representations made to the franchisee are Card My Yard not disclaiming in the franchise agreement or any related agreement?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- A.
Grant of Rights.
We hereby grant you the right, and you accept the obligation, to establish and operate a Card My Yard business under the Marks and the System in accordance with this Agreement at theFranchise Location.
This Agreement only grants you the right to operate the Card My Yard business at the Franchise Location in accordance with this Agreement and our standards.
You are not authorized to offer any of the products and services offered by Card My Yard businesses at wholesale.
- B.
Protected Area.
Your Protected Area will be described in Exhibit C.
Except as provided in Section II.C. and subject to your full compliance with this Agreement (including the minimum Gross Sales requirements set forth in Section II.C) and any other agreement between you or your Affiliates and us or our Affiliates, neither we nor any of our Affiliates will establish, or authorize any person or entity other than you to establish, a Card My Yard business in the Protected Area during the term of this Agreement.
If you are unable to provide services for all orders or inquiries submitted by consumers in the Protected Area, or if you mark yourself as unavailable, we or one of our other franchisees may provide services to those consumers during such times.
- C.
Reserved Rights and Minimum Gross Sales Requirements.
The rights granted to you under this Agreement are nonexclusive, and we and our Affiliates have and retain all rights within and outside the Protected Area except those expressly granted to you.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 FDD, Card My Yard does not disclaim the grant of rights to the franchisee to operate a Card My Yard business under the Marks and the System, in accordance with the Franchise Agreement at the Franchise Location. This is a fundamental aspect of the franchise agreement, as it defines the core rights and obligations of both the franchisor and the franchisee. The agreement specifies that the franchisee is authorized to operate the Card My Yard business only at the designated Franchise Location and in accordance with Card My Yard's standards.
Card My Yard also does not disclaim the franchisee's protected area, which is detailed in Exhibit C of the Franchise Agreement. Subject to the franchisee's compliance with the agreement, including meeting minimum gross sales requirements, Card My Yard and its affiliates will not establish or authorize another party to establish a Card My Yard business within the franchisee's protected area during the term of the agreement. However, Card My Yard retains certain rights, such as providing services to consumers within the protected area if the franchisee is unable to fulfill orders or marks themselves as unavailable.
It is important to note that the rights granted to the franchisee are nonexclusive, meaning Card My Yard retains all rights within and outside the protected area except those expressly granted to the franchisee. This ensures that Card My Yard can continue to develop and expand its business while providing franchisees with a defined territory to operate within. Prospective franchisees should carefully review Exhibit C and Section II.C of the Franchise Agreement to fully understand the scope of their protected area and the conditions that apply to it.