Who is responsible for the cost of renovating the Card My Yard business during a transfer?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) The transferee shall, at its expense and within the time period we reasonably require, renovate, modernize and otherwise upgrade the Card My Yard business to conform to our then-current System image, standards and specifications, provided that this subsection XV.B(5) will be applicable only if you have not renovated, updated and upgraded the Card My Yard business pursuant to subsection VIII.D 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 transferee is generally responsible for the costs of renovating, modernizing, and upgrading the Card My Yard business to meet the franchisor's current system standards during a transfer. Specifically, the FDD states that the transferee must bear these expenses and complete the renovations within a reasonable timeframe set by Card My Yard.
This requirement is conditional. The obligation to renovate only applies if the current franchisee has not already renovated, updated, and upgraded the Card My Yard business according to subsection VIII.D of the franchise agreement. This suggests that if the business is already up to date with Card My Yard's standards, the transferee may not need to undertake further renovations.
This condition protects Card My Yard's brand standards and ensures consistency across all franchise locations. For a prospective franchisee, this means that if they are considering purchasing an existing Card My Yard business, they should carefully assess whether the business meets the current brand standards to avoid unexpected renovation costs. They should also clarify with Card My Yard whether renovations have been completed according to subsection VIII.D to determine if this requirement will be waived.