Under what conditions can the Card My Yard franchise agreement be modified?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
| i. Franchisee's obligations on termination/nonrenewal | Section XIX. | Stop operating your Card My Yard business and using the Card My Yard System, confidential methods, procedures, patents (if any), techniques, and Marks; cancel any registration containing the Marks; not use any imitation of the Marks; pay amounts due and our damages and enforcement costs; comply with confidentiality and non competition covenants; return all Manuals and other proprietary materials; furnish list of advertising/sales promotion materials bearing the Marks; at our option, transfer or assign to us your rights in business telephone numbers, advertising and promotional materials, furnishings, and equipment (including all yard signs and letters); and modify the appearance of the Card My Yard business. |
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| j. Assignment of contract by franchisor | Section XV.A. | We may transfer our rights without restriction. |
| k. "Transfer" by franchisee – defined | Sections XV.B. and XV.C. | You must not transfer any direct or indirect interest in you (i.e. the franchisee entity), the Franchise Agreement (including any transfer of zip codes or other partial territorial rights under the Franchise Agreement) or the assets of the franchised business without our consent. |
| l. Franchisor's approval of transfer by franchisee | Section XV.B. | We must consent and you must meet conditions before transferring. |
| m. Conditions for franchisor approval of transfer | Section XV.B. | Pay all amounts due; not be in default; sign a general release; pay transfer fee; remain liable for pre-transfer obligations; and obtain a one-year tail on insurance policies to cover liabilities that may have been incurred prior to the transfer. Transferee must meet our criteria, complete required training, guarantee obligations; enter into then-current franchise agreement and upgrade the Card My Yard business |
Source: Item 17 — RENEWAL TERMINATION TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 51–55)
What This Means (2025 FDD)
Based on the 2025 Card My Yard Franchise Disclosure Document, the franchise agreement can be modified under specific conditions related to its transfer. According to Item 17, a franchisee cannot transfer any direct or indirect interest in the franchise, the Franchise Agreement itself (including any transfer of zip codes or other partial territorial rights), or the assets of the franchised business without Card My Yard's consent. This indicates that any modification that involves transferring ownership or rights requires franchisor approval.
Card My Yard's approval for a transfer is contingent upon meeting certain conditions. The franchisee must pay all outstanding amounts owed to Card My Yard and not be in default of the agreement. Additionally, the franchisee needs to sign a general release, pay a transfer fee, and remain liable for any pre-transfer obligations. The franchisee must also secure a one-year tail on their insurance policies to cover any liabilities incurred before the transfer.
Furthermore, the party to whom the franchise is being transferred (the transferee) must also meet Card My Yard's criteria, complete the required training program, and guarantee the obligations under the franchise agreement. Critically, the transferee must enter into the then-current franchise agreement, which implies that the terms of the original agreement may be updated or modified to align with the current standards of Card My Yard. The transferee must also upgrade the Card My Yard business to meet current standards.
In summary, the Card My Yard franchise agreement can be modified when the franchise is transferred, but only with Card My Yard's approval and under specific conditions. These conditions ensure that the financial and operational integrity of the franchise system is maintained and that the new franchisee is fully trained and compliant with the current standards.