Can Card My Yard transfer or assign the Franchise Agreement without the franchisee's consent?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. By Us. We will have the right to transfer or assign this Agreement and all or any part of our rights or obligations under this Agreement to any person or legal entity without your consent, and upon such transfer or assignment, the transferee or assignee shall be solely responsible for all our obligations arising subsequent to the transfer or assignment. Without limitation of the foregoing, we may sell our assets to a third party; may offer our securities privately or publicly; may merge with or, acquire other corporations, or may be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Card My Yard has the right to transfer or assign the Franchise Agreement without the franchisee's consent. Upon such transfer or assignment, the new entity assumes responsibility for Card My Yard's obligations arising after the transfer or assignment.
This means that a prospective Card My Yard franchisee should be aware that the franchisor can sell the company, merge with another corporation, or undergo financial restructuring, and the agreement can be transferred to a new owner without the franchisee's approval. The new owner would then be responsible for Card My Yard's obligations to the franchisee under the agreement.
This is a fairly standard clause in franchise agreements, as it allows the franchisor flexibility in managing its business. However, it also means that the franchisee's relationship with the franchisor could change without their consent. It is important for a prospective franchisee to consider this possibility and to evaluate the potential impact on their business.