Under what circumstances does Card My Yard charge liquidated damages related to termination?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
result in loss to us. |
| Liquidated Damages (Termination) | An amount equal to the greater of: (a) $6,600 or (b) the total royalties paid by you during the previous 12 months multiplied by two. If your Card My Yard business has not been open for at least 12 months, then your liquidated damages amount will be $6,600. | Upon your unauthorized closure of your Card My Yard business or any termination of the Franchise Agreement in connection with a breach by you. | This fee compensates us for your unauthorized closure of the Card My Yard business or any termination of the Franchise Agreement in connection with a breach by you. |
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Source: Item 6 — OTHER FEES (FDD pages 15–23)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, liquidated damages related to termination are charged under specific circumstances. If a Card My Yard franchisee closes their business without authorization or if the Franchise Agreement is terminated due to a breach by the franchisee, Card My Yard will impose liquidated damages.
The amount of these liquidated damages is calculated as the greater of two figures: $6,600, or twice the total royalties paid by the franchisee during the 12 months leading up to the termination. If the Card My Yard business has not been open for at least 12 months, the liquidated damages will be a flat $6,600.
This fee is intended to compensate Card My Yard for losses incurred due to the franchisee's unauthorized closure or breach of the Franchise Agreement. Prospective franchisees should understand these potential costs associated with terminating the agreement early or failing to comply with its terms.