Can the rights and remedies of the parties to the Card My Yard agreement be used more than once?
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. 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)
According to Card My Yard's 2025 Franchise Disclosure Document, the franchisor has the right to pursue multiple remedies for a franchisee's breach of the agreement. Specifically, the document states that liquidated damages are in addition to any other remedies available to Card My Yard. This means that Card My Yard is not limited to a single course of action if a franchisee violates the agreement.
For a prospective franchisee, this implies that being in breach of the agreement can lead to multiple penalties or required actions. For example, if a franchisee closes their Card My Yard business without authorization or terminates the agreement due to their own breach, they may be required to pay liquidated damages. This payment does not prevent Card My Yard from pursuing other legal or contractual remedies available to them.
Additionally, the FDD specifies that a fee of $5,000 per occurrence will be owed for each instance of intentional non-reporting or under-reporting of revenues. In such cases, Card My Yard has the right to terminate the franchise without allowing the franchisee an opportunity to correct the issue. This further illustrates Card My Yard's ability to exercise multiple rights and remedies concurrently, increasing the potential consequences for franchisees who fail to comply with the terms of the franchise agreement.