Does Card My Yard have the right to sell its assets to a third party?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. By Us. We will have the right to transfer or assign this Agreement and all or any part of our rights or obligations under this Agreement to any person or legal entity without your consent, and upon such transfer or assignment, the transferee or assignee shall be solely responsible for all our obligations arising subsequent to the transfer or assignment. Without limitation of the foregoing, we may sell our assets to a third party; may offer our securities privately or publicly; may merge with or, acquire other corporations, or may be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to the 2025 Card My Yard Franchise Disclosure Document, Card My Yard has the right to transfer or assign the Franchise Agreement, including its rights and obligations, to another person or legal entity without the franchisee's consent. This transfer can involve selling assets to a third party. After the transfer or assignment, the new entity assumes responsibility for Card My Yard's obligations moving forward.
This clause means that a prospective Card My Yard franchisee should be aware that the company could be sold or its assets transferred to a new owner at any time. The franchisee's agreement would then be with the new owner, and the franchisee would need to adapt to any changes in management, policies, or strategic direction that the new owner might implement.
While Card My Yard retains broad rights to transfer the agreement and its assets, the franchisee's ability to transfer their own interest in the business is restricted, requiring Card My Yard's prior written consent. This difference highlights the power dynamic in the franchise relationship, where the franchisor maintains significant control over the brand and the franchise network's future.