Which section of the Card My Yard Franchise Agreement addresses the franchisee's obligations regarding trademarks and proprietary information?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| d. Termination by franchisee | Not Applicable | Not Applicable (your termination rights are subject to state law) |
|---|---|---|
| e. Termination by franchisor without cause | Not Applicable | Not Applicable |
| f. Termination by franchisor with cause | Section XVIII. | We may terminate on your default. |
| g. "Cause" defined – curable defaults | Section XVIII.C. | For any default except those specified as non-curable you have 30 days to cure (5 days for failure to submit a required report or pay monies; 24 hours for misuse of the Marks; 7 days if you fail to obtain the required insurance coverages; and 10 days if you fail to comply with the non-competition covenants). |
| h. "Cause" defined – non-curable defaults | Sections XVIII.A. and XVIII.B. | Insolvency; general assignment for benefit of creditors; bankruptcy; receivership; final judgment remains unsatisfied for 30 days or more; dissolution; execution of levy or sale after levy; foreclosure proceedings not dismissed within 30 days; operation of Card My Yard business at location that we have not accepted;; failure to begin business within the required time period; abandonment or forfeiture of right to do business; conviction of certain crimes; threat to public health or safety; unauthorized transfer; failure to comply with certain confidentiality covenants; false records or submission of false reports; breach of any covenants or false representations; failure to comply with quality assurance program; default under any other franchise agreement and failure to cure; repeated defaults whether or not cured; assets, property or interests "blocked" under any terrorism laws or regulations or other violation of such laws or regulations. |
| i. Franchisee's obligations on termination/nonrenewal | Section XIX. | Stop operating your Card My Yard business and using the Card My Yard System, confidential methods, procedures, patents (if any), techniques, and Marks; cancel any registration containing the Marks; not use any imitation of the Marks; pay amounts due and our damages and enforcement costs; comply with confidentiality and non competition covenants; return all Manuals and other proprietary materials; furnish list of advertising/sales promotion materials bearing the Marks; at our option, transfer or assign to us your rights in business telephone numbers, advertising and promotional materials, furnishings, and equipment (including all yard signs and letters); and modify the appearance of the Card My Yard business. |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 33–34)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Section XIX of the Franchise Agreement outlines the franchisee's obligations upon termination or nonrenewal, including ceasing the use of the Card My Yard System, confidential methods, trademarks, and other proprietary information. Franchisees must also cancel any registrations containing the Marks, avoid using any imitation of the Marks, and return all manuals and proprietary materials.
Specifically, upon termination or nonrenewal of the franchise agreement, franchisees are required to discontinue operating their Card My Yard business and using the Card My Yard System. This includes all confidential methods, procedures, techniques, and trademarks associated with the brand. Franchisees must also cancel any registrations containing the Marks and refrain from using any imitations of the Marks.
Furthermore, franchisees are obligated to return all manuals and other proprietary materials to Card My Yard. They must also provide a list of advertising and sales promotion materials bearing the Marks. At the franchisor's option, franchisees may be required to transfer or assign their rights in business telephone numbers, advertising and promotional materials, furnishings, and equipment (including all yard signs and letters) to Card My Yard. Additionally, franchisees must modify the appearance of the Card My Yard business to disassociate it from the brand.