Does the All Team franchisee represent that they will not engage in any terrorist activity?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. UNDER APPLICABLE U.S. LAW, INCLUDING WITHOUT LIMITATION EXECUTIVE ORDER 1224, SIGNED ON SEPTEMBER 23, 2001 (THE "ORDER"), ATFC IS PROHIBITED FROM ENGAGING IN ANY TRANSACTION WITH ANY PERSON ENGAGE IN, OR WITH A PERSON AIDING ANY PERSON ENGAGED IN ACTS OF TERRORISM AS DEFINED IN THE ORDER. ACCORDINGLY, FRANCHISEE DOES NOT, AND HEREAFTERE WILL NOT ENGAGE IN ANY TERRORIST ACTIVITY. IN ADDITION, FRANCHISEE IS NOT AFFILIATED WITH AND DOES NOT SUPPORT ANY INDIVIDUAL OR ENTITY ENGAGED IN, CONTEMPLATING, OR SUPPORTING TERRITORIST ACTIVITY. FINALLY, FRANCHISEE IS NOT ACQUIRING THE RIGHTS GRANTED UNDER THIS AGREEMENT WITH THE INTENT TO GENERATE FUNDS TO CHANNEL TO ANY INDIVIDUAL OR ENTITY ENGAGED IN, CONTEMPLATING, OR SUPPORTING TERRORIST ACTIVITY, OR TO OTHERWISE SUPPORT OR FUTHER ANY TERRORIST ACTIVITY.
Source: Item 22 — CONTRACTS (FDD pages 33–34)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the franchisee explicitly represents that they will not engage in any terrorist activity. The franchisee also affirms that they are not affiliated with or supportive of any individual or entity involved in terrorist activities. Furthermore, the franchisee confirms that they are not acquiring the franchise rights with the intention of generating funds to support any terrorist activity. This representation is a condition of the franchise agreement, ensuring All Team complies with U.S. laws prohibiting transactions with individuals or entities engaged in terrorism.
This requirement means a prospective All Team franchisee must certify their compliance with anti-terrorism laws and their lack of involvement in any activities that support terrorism. This is a serious legal and ethical obligation, and any violation could result in severe consequences, including termination of the franchise agreement and potential legal penalties. All Team, like many franchise systems, includes such clauses to protect its brand and ensure compliance with applicable laws.
For a prospective franchisee, this clause highlights the importance of understanding and adhering to all legal and ethical standards associated with operating an All Team franchise. It also underscores the need for transparency and honesty in all dealings with the franchisor. Franchisees should seek legal counsel if they have any questions or concerns about this representation or their obligations under the franchise agreement.