Can the rights and remedies in the Card My Yard Franchise Agreement be exercised more than once?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
employees, agents, successors and assigns.
- (5) We may assign our options under this Section XIX.B.to any person or entity without your consent.
- C. Liquidated Damages/Unauthorized Closure Fee. Upon any unauthorized closure of the Card My Yard business by you or any termination of this Agreement in connection with a breach by you, you will be required to promptly pay us liquidated damages in an amount equal to the greater of (a) $6,600 or (b) the total royalties paid by you under this Agreement during the previous 12 months multiplied by two (or if your Card My Yard business 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. An amount equal to $5,000 per occurrence will be owed for each instance when we document your intentional non-reporting or under-reporting
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
Based on the 2025 Card My Yard Franchise Disclosure Document, the franchisor, CMY Franchising, LLC, retains various rights and options that can be exercised under specific circumstances, particularly upon termination or expiration of the franchise agreement. These rights and remedies are not explicitly limited to a single instance, implying that they can be applied multiple times if the triggering conditions occur repeatedly.
For instance, Card My Yard has the option to purchase advertising and sales promotion materials from the franchisee after inspection. If the franchisee continues to create new materials, this right could be exercised again. Similarly, upon termination or expiration of the agreement, Card My Yard has the option to require the franchisee to transfer all yard letters and signs at no cost, and to acquire other assets of the business. If a franchisee were to default multiple times, leading to separate terminations, these options could theoretically be exercised more than once.
Additionally, Card My Yard outlines conditions under which liquidated damages may be assessed, such as unauthorized closure of the business or intentional under-reporting of revenues. Specifically, the FDD states that an amount equal to $5,000 per occurrence will be owed for each instance of documented intentional non-reporting or under-reporting of revenues. This clause explicitly allows for the assessment of fees "per occurrence," indicating that this remedy can be applied multiple times if the franchisee repeatedly engages in such behavior. The agreement also specifies that these liquidated damages are in addition to any other remedies available to Card My Yard, further suggesting that multiple remedies can be pursued concurrently or consecutively.
Prospective franchisees should be aware that Card My Yard retains significant control and options throughout the franchise relationship and after its termination. The ability to exercise these rights and remedies more than once provides Card My Yard with ongoing mechanisms to protect its brand and system standards, and to address repeated instances of non-compliance by the franchisee. Franchisees must fully understand their obligations and the potential consequences of failing to meet them, as these can lead to multiple instances of franchisor action.