Does Card My Yard have any restrictions on transferring its rights under the Franchise Agreement?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| j. Assignment of contract by franchisor | Section XV.A. | We may transfer our rights without restriction. | k. "Transfer" by franchisee – defined | Sections XV.B. and XV.C. | You must not transfer any direct or indirect interest in you (i.e. the franchisee entity), the Franchise Agreement (including any transfer of zip codes or other partial territorial rights under the Franchise Agreement) or the assets of the franchised business without our consent. | l. Franchisor's approval of transfer by franchisee | Section XV.B. | We must consent and you must meet conditions before transferring. | m. Conditions for franchisor approval of transfer | Section XV.B. | Pay all amounts due; not be in default; sign a general release; pay transfer fee; remain liable for pre-transfer obligations; and obtain a one-year tail on insurance policies to cover liabilities that may have been incurred prior to the transfer. Transferee must meet our criteria, complete required training, guarantee obligations; enter into then-current franchise agreement and upgrade the Card My Yard business
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, Card My Yard faces no restrictions on transferring its rights under the Franchise Agreement. The FDD specifies that Card My Yard has the freedom to transfer its rights without any limitations.
However, a franchisee is significantly restricted from transferring any interest in the franchise. The franchisee must not transfer any direct or indirect interest in the franchise entity, the Franchise Agreement itself (including zip codes or territorial rights), or the assets of the franchised business without Card My Yard's consent.
To gain approval for a transfer, a Card My Yard franchisee must meet several conditions. These include paying all outstanding amounts, not being in default of the agreement, signing a general release, paying a transfer fee, and remaining liable for pre-transfer obligations. Additionally, the franchisee must secure a one-year tail on insurance policies to cover potential liabilities incurred before the transfer. The person or entity to whom the franchise is being transferred must also meet Card My Yard's criteria, complete the required training, guarantee the obligations, enter into the then-current franchise agreement, and upgrade the Card My Yard business to current standards.