Upon termination of the Card My Yard agreement, what must a franchisee immediately cease doing?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Your Obligations Upon Termination. Upon the termination or expiration of this Agreement for any reason, all rights granted to you will terminate, and you must:
(1) Immediately cease to operate the Card My Yard business under this Agreement, and shall not thereafter, directly or indirectly, represent to the public or hold yourself out as one of our present or former franchisees.
(2) Immediately and permanently cease to use, in any manner whatsoever, the Marks and any Confidential Information associated with the System. Without limitation of the foregoing, you must cease to use all signs, advertising materials, displays, stationery, forms and any other items which display the Marks.
(3) Take such action as may be necessary to cancel any assumed name, fictitious name or equivalent registration which contains the mark "Card My Yard" or any other Mark, and furnish us with satisfactory evidence of compliance within five (5) days after termination or expiration of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement for any reason, the franchisee must immediately cease certain activities. Specifically, the franchisee must immediately stop operating the Card My Yard business and is prohibited from representing themselves as a current or former Card My Yard franchisee.
In addition to ceasing operations, the franchisee must immediately and permanently discontinue any use of Card My Yard's Marks and Confidential Information associated with the System. This includes refraining from using all signs, advertising materials, displays, stationery, forms, and any other items that display the Marks.
Furthermore, the franchisee is obligated to take necessary actions to cancel any assumed name, fictitious name, or equivalent registration containing the mark "Card My Yard" or any other Mark. Evidence of compliance with this requirement must be provided to Card My Yard within five days after the termination or expiration of the Franchise Agreement. These post-termination obligations are fairly standard in franchising, as franchisors need to protect their brand and system after a franchisee exits the system.