Which sections of the Card My Yard Franchise Agreement continue after expiration or termination?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- G. Powers of Attorney. You hereby appoint us as your true and lawful attorney-in-fact, with full power and authority (i) to assign to us upon the termination or expiration of this Agreement (a) all rights to the telephone numbers of the Card My Yard business, any related business listings, and all rights to any website listings or services, search engines or systems, and any other business listings related to the Card My Yard business and (b) at our option, your interest in any lease for the Franchise Location and any equipment used in the operation of the Card My Yard business; and (ii) to obtain any and all returns and reports related to the Card My Yard business that you file with any local, state or federal taxing authority. Such powers of attorney shall survive the expiration or termination of this Agreement, and you agree to execute such forms and documents as we deem necessary to appoint us your true and lawful attorney-in-fact with full power and authority for the foregoing purposes.
- H. Continuing Obligations. You and your Owners make the foregoing representations, warranties and covenants understanding that such representations, warranties and covenants are continuing obligations. You agree to cooperate with us to verify your and your Owners' continuing compliance with such representations, warranties and covenants. Any failure to comply with these representations, warranties and covenants will constitute a material event of default under this Agreement.
XIX. POST-TERMINATION
A. Your Obligations Upon Termination. Upon the termination or expiration of this Agreement for any reason, all rights granted to you will terminate, and you must:
(1) Immediately cease to operate the Card My Yard business under this Agreement, and shall not thereafter, directly or indirectly, represent to the public or hold yourself out as one of our present or former franchisees.
(2) Immediately and permanently cease to use, in any manner whatsoever, the Marks and any Confidential Information associated with the System. Without limitation of the foregoing, you must cease to use all signs, advertising materials, displays, stationery, forms and any other items which display the Marks.
(3) Take such action as may be necessary to cancel any assumed name, fictitious name or equivalent registration which contains the mark "Card My Yard" or any other Mark, and furnish us with satisfactory evidence of compliance within five (5) days after termination or expiration of this Agreement.
a. Directly or indirectly divert, or attempt to divert any business opportunity or customer of Card My Yard businesses to any competitor; and
b. Directly or indirectly, for yourself or through, on behalf of, or in conjunction with any other person, persons, partnership, corporation, limited liability company, or other association or entity, own, maintain, operate, engage in or have any financial or beneficial interest in, advise, assist or make loans to, any business which is the same as or similar to a Card My Yard business (including any business that offers yard greeting services or other celebratory display items or services of any kind, including but not limited to, balloon displays, lighted displays, etc.) and which is, or is intended to be, located within the United States, its territories or commonwealths, or any other country, province, state or geographic area in which we or our Affiliates have used, sought registration of or registered the Marks or similar marks or operate or license others to operate a business under the Marks or similar marks; provided that during the two year-period following termination, expiration or transfer of the Franchise Agreement, the non-compete restrictions shall be limited to operations: (i) at the Franchise Location, (ii) within the Protected Area, (iii) within a twenty-five (25)-mile radius of the Franchise Location, or (iv) within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, several obligations continue even after the Franchise Agreement expires or is terminated. Card My Yard retains the power of attorney to manage telephone numbers, business listings, website services, and potentially the lease for the franchise location. This ensures a smooth transition and protects Card My Yard's brand presence online and in the local market. Franchisees must also continue to cooperate with Card My Yard to verify compliance with ongoing representations, warranties, and covenants outlined in the agreement.
Upon termination or expiration, franchisees must immediately cease operating as a Card My Yard business and discontinue using any of Card My Yard's trademarks or confidential information. This includes refraining from representing themselves as a current or former franchisee and ceasing the use of all branded materials like signs and advertising. Franchisees are also required to cancel any assumed names or fictitious name registrations containing the "Card My Yard" mark.
Additionally, franchisees are restricted from engaging in any competitive business that is similar to Card My Yard. This non-compete clause prevents former franchisees from directly or indirectly owning, operating, or having a financial interest in a competing yard greeting service within the United States or any area where Card My Yard or its affiliates operate or have registered trademarks. For two years post-termination, this restriction is limited to the franchise location, the protected area, or within a 25-mile radius of any existing or under-construction Card My Yard business. These measures are in place to protect Card My Yard's market share and prevent unfair competition from former franchisees.