Who is responsible for investigating regulations and licensing requirements imposed by state and local government authorities for a Card My Yard franchise?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
You must comply with all local, state, and federal laws that apply to your operations, including health, sanitation, smoking, EEOC, OSHA, discrimination, employment, and sexual harassment laws. The Americans with Disabilities Act of 1990 ("ADA") requires readily accessible accommodations for disabled people. You must also obtain any applicable real estate permits, licenses, and operational licenses for your business.
You are solely responsible for investigating, and complying with, the license/permit requirements and other laws in your state.
You must comply with all payment card infrastructure ("PCI") industry and government security standards and requirements designed to protect cardholder data. PCI standards apply to both technical and operational aspects of credit card and other payment card transactions and apply to all organizations which store, process or transmit cardholder data.
{00281964-1 } 12 We recommend that you consult with legal counsel or other professional advisors to help you investigate and understand
these laws before you purchase a franchise. It is your sole responsibility to thoroughly investigate which regulations and/or licensing requirements are imposed by your state and local government authorities.
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 9–13)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the franchisee is solely responsible for investigating and complying with all applicable license, permit, and legal requirements at the local, state, and federal levels. This includes, but is not limited to, regulations concerning health, sanitation, smoking, EEOC, OSHA, discrimination, employment, and sexual harassment laws. Franchisees must also ensure they meet the requirements of the Americans with Disabilities Act of 1990 (ADA), which mandates readily accessible accommodations for disabled individuals. Additionally, franchisees are responsible for obtaining any necessary real estate permits, operational licenses, and compliance with PCI standards for payment card security.
This means that before a prospective franchisee purchases a Card My Yard franchise, they must conduct thorough due diligence to understand all the legal and regulatory obligations specific to their location. This includes consulting with legal counsel or other professional advisors to navigate the complexities of these laws and requirements. The FDD emphasizes that the responsibility for understanding and adhering to these regulations rests entirely with the franchisee.
Given this responsibility, it is crucial for potential Card My Yard franchisees to proactively engage with local and state authorities to identify all relevant regulations and licensing requirements. Failure to comply with these regulations can result in fines, penalties, or even the closure of the business. Therefore, understanding and addressing these obligations is a critical step in the franchise purchase process.
While Card My Yard provides a business system and operational support, the onus is on the franchisee to ensure their business operates within the bounds of the law. This is a common arrangement in franchising, where the franchisor provides the business model and brand, but the franchisee manages the local regulatory environment.