What are the requirements for a Card My Yard franchisee to renew or extend their franchise term?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the franchise term | Section IV.A | Five (5) year initial term. |
| b. Renewal or extension of the term | Section IV.B | Three additional 5-year terms. |
| c. Requirements for franchisee to renew or extend | Section IV.B | Your renewal right permits you to remain as a franchisee after the initial term of your franchise agreement expires. However, to remain a franchisee, you must meet all required conditions to renewal, including signing our then-current Franchise Agreement, which may contain materially different terms and conditions and different territory boundaries from your original contract, except that the fees on renewal will not be greater than the fees that we then impose on similarly situated renewing franchisees. |
| Other | ||
| requirements | ||
| are: | ||
| Give written notice; update required items; | ||
| not | ||
| be | ||
| in | ||
| default; | ||
| pay | ||
| all | ||
| money | ||
| owed; | ||
| retain | ||
| right to Location; pay us a renewal fee; sign | ||
| general release; comply with then-current | ||
| qualifications and training requirements. |
Source: Item 17 — RENEWAL TERMINATION TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 51–55)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the initial franchise term is five years, with an option to renew for three additional five-year terms. To renew the franchise agreement, a franchisee must meet several conditions. These include providing written notice of renewal and updating any items that Card My Yard requires to be updated.
Additionally, the franchisee must not be in default of the agreement, must pay all outstanding money owed to Card My Yard, and must retain the right to their current business location. A renewal fee must be paid to Card My Yard, and the franchisee must sign a general release. Compliance with the then-current qualifications and training requirements is also mandatory for renewal.
Furthermore, franchisees must sign the then-current Franchise Agreement, which may include materially different terms and conditions, as well as different territory boundaries compared to the original contract. However, the renewal fees will not be greater than the fees that Card My Yard imposes on similarly situated renewing franchisees. This means that while other aspects of the agreement could change, the financial burden of renewal in terms of fees will remain consistent with what other franchisees in similar situations are paying.