What is warranted and represented regarding the Card My Yard franchisee's ownership or interest in similar businesses?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Your corporate charter or written partnership or limited liability company agreement, as applicable, will at all times provide that your activities are confined exclusively to the operation of Card My Yard businesses. You warrant and representthat neither you nor any of your Affiliates or Owners own, operate or have any financial or beneficial interest in any business that is the same as or similar to a Card My Yard business (including any business that offers yard greeting services or other celebratory display items or services of any kind, including but not limited to, balloon displays, lighted displays, etc.);
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, franchisees and their affiliates or owners warrant and represent that they do not own, operate, or have any financial or beneficial interest in any business that is the same as or similar to a Card My Yard business. This includes businesses offering yard greeting services or other celebratory display items, such as balloon displays or lighted displays. This restriction applies to the franchisee's activities during the term of the franchise agreement.
After the termination, expiration, or transfer of the Franchise Agreement, the franchisee is restricted from engaging in a similar business for a period of two years. This non-compete restriction is limited to operations (i) at the Franchise Location, (ii) within the Protected Area, (iii) within a twenty-five (25)-mile radius of the Franchise Location, or (iv) within a twenty-five (25)-mile radius of any Card My Yard business then in existence or under construction.
Card My Yard also maintains the right to reduce the scope of any covenant set forth in this section without the franchisee's consent, effective immediately upon notice to the franchisee. The franchisee and their owners must promptly comply with any covenant as modified. This clause ensures Card My Yard can adjust restrictions as needed to protect its business interests, which could impact the franchisee's future business opportunities.