Under what conditions can Card My Yard take or withhold an action?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
decisions,take actions and/or refrain from taking actions not inconsistent with your rights and obligations hereunder.
If you fail to comply with any of these obligations, we have the right to prohibit you from opening the Card My Yard business.
If we have given you notice that you are in default, then we may (but are not obligated to) assume interim management of the Card My Yard business during the pendency of any cure period or in lieu of immediately terminating this Agreement.
If we elect to assume interim management of the Card My Yard business (i) our election will not relieve you of your obligations under this Agreement; (ii) we will not be liable for any debts, losses, costs or expenses incurred in the operation of the Card My Yard business during any such interim management period; (iii) we will have the right to charge a reasonable fee for our management services; and (iv) you agree to, and hereby do, indemnify and hold us harmless against any and all claims, demands, judgments, fines, losses, liabilities, costs, amounts paid in settlement and reasonable expenses (including, but not limited to attorneys' fees) incurred in connection with our interim management of the Card My Yard business, other than those arising solely from our gross negligence or willful misconduct.
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 retains the right to make decisions, take actions, or refrain from taking actions as long as those actions are consistent with the franchisee's rights and obligations as defined in the franchise agreement.
Specifically, Card My Yard can prohibit a franchisee from opening their Card My Yard business if the franchisee fails to meet pre-opening obligations, such as completing exterior and interior preparations, including the installation of equipment, fixtures, furnishings, and signs according to approved plans and specifications. This also applies if the franchisee fails to secure an acceptable site or operate the business within fifty-five (55) days after the agreement's effective date, unless a written extension is granted.
Furthermore, if a franchisee is in default, Card My Yard has the option to assume interim management of the Card My Yard business. This action does not relieve the franchisee of their obligations under the agreement, and Card My Yard is not liable for any debts, losses, costs, or expenses incurred during this interim management. Card My Yard can also charge a reasonable fee for their management services, and the franchisee must indemnify Card My Yard against any claims or expenses related to their interim management, except those arising from gross negligence or willful misconduct by Card My Yard.