Are there any exceptions to the non-competition covenants for a Card My Yard franchisee?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, there are some exceptions to the non-competition covenants for a franchisee. During the two-year period following termination, expiration, or transfer of the Franchise Agreement, the non-compete restrictions are limited to operations at the Franchise Location, within the Protected Area, within a twenty-five (25)-mile radius of the Franchise Location, or within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction.
This means that after a franchise agreement ends, a former franchisee is restricted from operating a similar business within a specific geographic area. However, this restriction is not absolute and is limited to a two-year period. The restrictions apply to the franchise location itself, the protected area around that location, and a 25-mile radius around both the franchise location and any other existing or under-construction Card My Yard business.
These non-compete terms are designed to protect Card My Yard's market and goodwill. The geographic limitations allow a former franchisee to potentially operate a similar business outside the restricted zones, and the two-year time limit provides a defined period after which the franchisee has no further restrictions. A prospective franchisee should carefully consider these limitations and how they might affect their future business opportunities should they decide to leave the Card My Yard system.