Who must the transferor release claims against for a Card My Yard franchise transfer?

According to Card My Yard's 2025 Franchise Disclosure Document, a transferor—the existing franchisee selling their business—must execute a general release of claims against specific parties as a condition of the transfer. This release must be in a form satisfactory to Card My Yard.

The release extends to Card My Yard and its Affiliates, as well as their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees. This encompasses individuals in both their corporate and individual capacities, covering past and present roles.

The claims being released include, but are not limited to, those arising under the Franchise Agreement itself, any other agreements with Card My Yard or its Affiliates, and any claims under federal, state, or local laws, rules, and regulations or orders. This is a comprehensive release, designed to protect Card My Yard from potential future legal actions by the transferring franchisee related to their operation of the franchise.

For a prospective Card My Yard franchisee purchasing an existing business, this requirement means the seller is giving up their right to sue Card My Yard for pretty much anything related to the franchise. It protects Card My Yard from potential liabilities arising from the previous owner's actions or inactions. A potential franchisee should seek legal counsel to fully understand the implications of such a broad release before agreeing to the transfer.