What are the restrictions against competition or solicitation that a Card My Yard franchisee must comply with?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees face several restrictions regarding competition and solicitation, both during the franchise term and for a period afterward. During the term of the agreement, a franchisee cannot directly or indirectly divert business opportunities or customers from Card My Yard to a competitor. They are also prohibited from owning, 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 celebratory displays, within the United States or any area where Card My Yard or its affiliates have used, sought registration of, or registered their marks.
Following the termination, expiration, or transfer of the Franchise Agreement, the non-compete restrictions extend for two years. During this period, the restrictions are limited to operations at the Franchise Location, within the Protected Area, within a 25-mile radius of the Franchise Location, or within a 25-mile radius of any existing or under-construction Card My Yard business. These restrictions are designed to protect Card My Yard's market and goodwill by preventing franchisees from immediately leveraging their knowledge and resources to compete against the franchise system.
Additionally, franchisees must maintain the confidentiality of Card My Yard's Confidential Information, using it only in connection with their franchise operation. This includes not registering domain names that use or create an association with Card My Yard's marks or the System without express written consent. The domain name must be registered in Card My Yard's name and licensed back to the franchisee, with the license terminating upon expiration or termination of the agreement. These measures ensure that franchisees do not exploit Card My Yard's brand recognition or proprietary information for their own benefit, especially after they are no longer part of the franchise system.
Card My Yard also retains rights to operate and license others outside of a franchisee's protected area, develop other business systems, advertise within the protected area, and engage in the sale of similar products through other distribution methods like the internet. However, Card My Yard cannot establish another Card My Yard business in the Protected Area. These reserved rights highlight that the rights granted to the franchisee are nonexclusive, and Card My Yard maintains control over its brand and business operations, even within a franchisee's territory.