Regarding Aplus franchises, what is the franchisee's obligation concerning accepting money from Blocked Persons as defined by Executive Order 13224?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
| 11.2.6. You represent that neither your property nor any interest in your property, nor the property | |
|---|---|
| of any of your Owners, officers, directors, managers, partners, agents or employees, or their respective | |
| interests therein, have been blocked pursuant to Executive Order 13224 of September 23, 2001, pertaining | |
| to persons who commit, threaten to commit, or support terrorism (“Blocked Persons”). You represent and | |
| warrant to Franchisor that you will not accept money from or employ any Blocked Person. |
Source: Item 23 — RECEIPT (FDD pages 68–302)
What This Means (2024 FDD)
According to Aplus's 2024 Franchise Disclosure Document, franchisees are prohibited from accepting money from Blocked Persons, as defined by Executive Order 13224 of September 23, 2001, which pertains to individuals or entities that commit, threaten to commit, or support terrorism. This obligation extends to the franchisee's owners, officers, directors, managers, partners, agents, and employees.
This requirement means that a prospective Aplus franchisee must ensure that neither they nor anyone associated with their business is on any list of Blocked Persons. Furthermore, they must implement procedures to avoid accepting funds from such individuals or entities. This could involve screening customers or implementing specific payment protocols.
Failure to comply with this representation and warranty could have serious consequences, potentially leading to legal repercussions and termination of the franchise agreement with Aplus. This is a critical aspect of the franchise agreement, highlighting the importance of due diligence and adherence to legal and regulatory requirements.