Are the rights and remedies in the Card My Yard Franchise Agreement cumulative or alternative?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
has not been open for at least 12 months then your liquidated damages amount will be $6,600). Such amount shall be due and payable to us in one lump sum payment promptly upon our written request. Such liquidated damages are in addition to, and not in lieu of, any other remedies available to us under this Agreement and shall be due and payable
to us regardless of whether we terminate this Agreement or take other remedial actions.
D. Liquidated Damages/Non-Reporting or Under-Reporting Fee.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, the remedies available to Card My Yard are cumulative. This means that if a franchisee breaches the agreement, Card My Yard can pursue multiple remedies simultaneously, rather than being limited to choosing only one.
Specifically, the FDD states that the liquidated damages for unauthorized closure or termination due to a franchisee's breach are "in addition to, and not in lieu of, any other remedies available to us under this Agreement." This indicates that Card My Yard can seek liquidated damages and also pursue other legal or contractual remedies.
For example, if a Card My Yard franchisee closes their business without authorization, Card My Yard could demand the $6,600 liquidated damages fee (or a higher amount based on royalties) and also pursue legal action for breach of contract or seek an injunction to prevent the franchisee from operating a competing business. This is a standard practice in franchising, allowing franchisors to protect their brand and system effectively.
Additionally, the FDD mentions a $5,000 fee for each instance of intentional non-reporting or under-reporting of revenues. In such cases, Card My Yard retains the right to terminate the franchise without allowing the franchisee an opportunity to correct the issue. This further illustrates the cumulative nature of the remedies, as Card My Yard can impose the fee and terminate the agreement.