Can Card My Yard undertake a leveraged buyout?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. By Us. We will have the right to transfer or assign this Agreement and all or any part of our rights or obligations under this Agreement to any person or legal entity without your consent, and upon such transfer or assignment, the transferee or assignee shall be solely responsible for all our obligations arising subsequent to the transfer or assignment. Without limitation of the foregoing, we may sell our assets to a third party; may offer our securities privately or publicly; may merge with or, acquire other corporations, or may be acquired by another corporation; may undertake a refinancing, recapitalization, leveraged buyout or other economic or financial restructuring.
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 has the right to undertake a leveraged buyout. The FDD states that Card My Yard can transfer or assign the agreement to another entity without the franchisee's consent.
Specifically, Card My Yard retains the right to sell its assets, offer securities, merge with or acquire other corporations, be acquired by another corporation, or undertake a refinancing, recapitalization, leveraged buyout, or other economic or financial restructuring. This means that as a franchisee, your agreement with Card My Yard could be transferred to a new owner or entity resulting from one of these transactions.
This clause provides Card My Yard with significant flexibility in managing its business and potentially allows for major changes in the company's ownership or financial structure without requiring the consent of individual franchisees. While this benefits Card My Yard, it also means that franchisees must be prepared for the possibility of working under new management or with a different corporate structure during the term of their franchise agreement.