Under what conditions can Card My Yard terminate the franchise agreement with cause?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
-----------------| | e. Termination by franchisor without cause | Not Applicable | Not Applicable | | f. Termination by franchisor with cause | Section XVIII. | We may terminate on your default. | | g. "Cause" defined – curable defaults | Section XVIII.C. | For any default except those specified as non-curable you have 30 days to cure (5 days for failure to submit a required report or pay monies; 24 hours for misuse of the Marks; 7 days if you fail to obtain the required insurance coverages; and 10 days if you fail to comply with the non-competition covenants). | | h. "Cause" defined – non-curable defaults | Sections XVIII.A. and XVIII.B. | Insolvency; general assignment for benefit of creditors; bankruptcy; receivership; final judgment remains unsatisfied for 30 days or more; dissolution; execution of levy or sale after levy; foreclosure proceedings not dismissed within 30 days; operation of Card My Yard business at location that we have not accepted;; failure to begin business within the required time period; abandonment or forfeiture of right to do business; conviction of certain crimes; threat to public health or safety; unauthorized transfer; failure to comply with certain confidentiality covenants; false records or submission of false reports; breach of any covenants or false representations; failure to comply with quality assurance program; default under any other franchise agreement and failure to cure; repeated defaults whether or not cured; assets, property or interests "blocked" under any terrorism laws or regulations or other violation of such laws or regulations. |
| 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;
Source: Item 17 — RENEWAL TERMINATION TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 51–55)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, Card My Yard can terminate the franchise agreement if the franchisee defaults. The FDD outlines two categories of defaults: curable and non-curable. For curable defaults, the franchisee has a specific timeframe to correct the issue.
For most curable defaults, Card My Yard franchisees have 30 days to resolve the issue. However, there are exceptions. Franchisees have only 5 days to submit a required report or pay monies owed, 24 hours for misuse of the Card My Yard Marks, 7 days to obtain required insurance coverage, and 10 days to comply with non-competition covenants.
Non-curable defaults, which allow Card My Yard to terminate the agreement immediately, include events such as insolvency, assigning assets for the benefit of creditors, bankruptcy, receivership, or having a final judgment unsatisfied for 30 days or more. Other non-curable defaults include dissolution, execution of levy or sale after levy, foreclosure proceedings not dismissed within 30 days, operating the Card My Yard business at an unapproved location, failing to begin business on time, abandonment or forfeiture of the right to do business, conviction of certain crimes, or posing a threat to public health or safety. Additional causes for immediate termination are unauthorized transfer, failure to comply with confidentiality covenants, submitting false records or reports, breaching covenants or making false representations, failing to comply with the quality assurance program, defaulting under any other franchise agreement and failing to cure, repeated defaults whether or not cured, and having assets, property or interests "blocked" under terrorism laws or regulations.