Can Card My Yard unreasonably withhold consent for a franchise transfer?

According to Card My Yard's 2025 Franchise Disclosure Document, when a landlord is involved in the franchise location, the landlord cannot unreasonably withhold consent to an assignment of the lease to another Card My Yard franchisee. Specifically, if Card My Yard notifies the landlord that the franchise is being granted to another franchisee, the landlord must permit the assignment of the lease without any fee, provided the new franchisee meets the landlord's reasonable financial qualifications.

This clause protects the Card My Yard franchisee by ensuring a smooth transition to a new franchisee, assuming the new franchisee is financially sound. This is a fairly standard clause in franchise agreements where the physical location is leased, as it prevents landlords from obstructing the transfer process with unreasonable demands.

However, the FDD does not explicitly state whether Card My Yard itself can unreasonably withhold consent for a franchise transfer in general. The document outlines various conditions that must be met for a transfer to be approved, such as the transferee meeting Card My Yard's qualifications, completing training programs, renovating the business if necessary, and signing the current franchise agreement. While these conditions provide a framework for the transfer process, they do not directly address whether Card My Yard can arbitrarily deny a transfer that meets these requirements. A prospective franchisee should seek clarification from Card My Yard regarding the specific circumstances under which a transfer might be denied, and whether there are any mechanisms in place to appeal such a decision.