What must the written agreement between the transferee and Card My Yard include?
Card_My_Yard Franchise · 2025 FDDAnswer from 2025 FDD Document
(6) The transferee shall enter into a written agreement, in a form satisfactory to us, assuming full, unconditional, joint and several liability for, and agreeing to perform from the date of the transfer, all of your obligations, covenants and agreements under this Agreement;
(7) The transferee shall execute our then-current form of franchise agreement for a term ending on the expiration date of this Agreement (including any renewal terms provided by this Agreement).
The new franchise agreement shall supersede this Agreement in all respects and its terms may differ from the terms of this Agreement (except that the fees imposed on the transferee will not be greater than the fees that we then impose on similarly situated transferees), provided that the transferee shall not be required to pay an initial franchise fee.
Source: Item 23 — RECEIPTS (FDD pages 84–259)
What This Means (2025 FDD)
According to Card My Yard's 2025 Franchise Disclosure Document, if a franchisee wishes to transfer their interest in the Card My Yard business, the transferee must enter into a written agreement. This agreement, in a form satisfactory to Card My Yard, requires the transferee to assume full, unconditional, joint, and several liability for all of the transferring franchisee's obligations, covenants, and agreements under the original franchise agreement. This means the new franchisee takes on all responsibilities from the date of the transfer.
Additionally, the transferee must execute Card My Yard's then-current form of franchise agreement. The term of this new agreement will end on the expiration date of the original agreement, including any renewal terms provided by the original agreement. The terms of the new franchise agreement may differ from the original agreement.
However, the fees imposed on the transferee cannot be greater than the fees Card My Yard then imposes on similarly situated transferees. Importantly, the transferee will not be required to pay an initial franchise fee. This ensures that while the transferee must adhere to the current franchise agreement terms, they are not unduly burdened with additional fees beyond what is standard for other new franchisees, and they are exempt from the initial franchise fee typically required of new franchisees.