What are the terms of the new franchise agreement that a transferee of a Card My Yard franchise must execute?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
All Transferrees acquiring an existing Card My Yard business from a franchisee must sign our then-current Franchise Agreement within thirty (30) days of approval of the transfer by us, and payment of applicable transfer fee.
- (7) The transferee shall execute our then-current form of franchise agreement for a term ending on the expiration date of this Agreement (including any renewal terms provided by this Agreement).
The new franchise agreement shall supersede this Agreement in all respects and its terms may differ from the terms of this Agreement (except that the fees imposed on the transferee will not be greater than the fees that we then impose on similarly situated transferees), provided that the transferee shall not be required to pay an initial franchise fee.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a transferee—someone buying an existing Card My Yard franchise—must adhere to specific terms when executing a new franchise agreement. The transferee must sign Card My Yard's current Franchise Agreement within 30 days of the transfer's approval and after paying any applicable transfer fees. This new agreement will be for a term that ends on the same expiration date as the original agreement, including any renewal terms that were part of the original agreement.
The new franchise agreement completely replaces the old one, and its terms may be different. However, the fees imposed on the transferee cannot be higher than what Card My Yard charges other similarly situated transferees. Importantly, the transferee will not be required to pay an initial franchise fee, which is a typical upfront cost for new franchisees.
This arrangement provides clarity for both Card My Yard and the incoming franchisee. It ensures that the business continues under the latest standards and practices of the Card My Yard system while protecting the transferee from excessive fees. Prospective buyers should carefully review the then-current franchise agreement to understand their obligations and rights fully.