Must all trade accounts be satisfied for a Card My Yard franchise transfer to be approved?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) All accrued monetary obligations of you and your Affiliates to us and our Affiliates arising under this Agreement or any other agreement,shall have been satisfied in a timely manner, and you shall have satisfied
all trade accounts and other debts of whatever nature or kind in a timely manner;
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, a franchisee seeking to transfer their business must satisfy all trade accounts and other debts in a timely manner as a condition for the transfer to be approved. Specifically, all accrued monetary obligations of the franchisee and their affiliates to Card My Yard and its affiliates must be satisfied.
This requirement ensures that Card My Yard maintains the financial integrity of its franchise system. By requiring the transferor to settle all outstanding debts, Card My Yard avoids potential disputes or liabilities that could arise from the transfer of a financially unstable franchise. This protects the brand's reputation and the interests of other franchisees within the system.
For a prospective Card My Yard franchisee, this means that if they plan to sell their franchise in the future, they must maintain good financial standing and ensure all debts are paid promptly. Failure to do so could delay or prevent the transfer of the franchise, potentially impacting the franchisee's ability to exit the business when desired. It is a fairly standard practice in franchising to ensure that the franchise is in good standing before allowing a transfer.