What certification regarding property and interest is required of Aw franchisees and their owners under Anti-Terrorism Laws?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
In connection with such compliance, Franchisee, you and your Owners certify, represent, and warrant that none of your property or interest is subject to being "blocked" under any of the Anti-Terrorism Laws and that your and/or your Owners are not otherwise in violation of any of the Anti-Terrorism Laws. "Anti-Terrorism Laws" means Executive Order 13224 issued by the President of the United States, the USA PATRIOT Act, and all other present and future federal, state and local laws, ordinances, regulations, policies, lists and any other requirements of any governmental authority addressing in or in any way relating to terrorist acts and acts of war.
You and your Owners acknowledge and agree that any violation of the Anti-Terrorism Laws by any of you or your employees or any "blocking" of any of your assets under the Anti-Terrorism laws shall constitute grounds for immediate termination of this Agreement and any other agreement you shall have entered with us or its affiliates, in accordance with the termination provisions of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, franchisees and their owners must certify that their property and interests are not subject to being "blocked" under any Anti-Terrorism Laws. They must also certify that they are not in violation of any Anti-Terrorism Laws. These laws include Executive Order 13224, the USA PATRIOT Act, and all other federal, state, and local laws, ordinances, regulations, policies, lists, and requirements related to terrorist acts and acts of war. This certification is part of Aw's broader effort to comply with Anti-Terrorism Laws.
This requirement means that prospective Aw franchisees and their owners must ensure they are fully compliant with all applicable Anti-Terrorism Laws. This includes conducting thorough due diligence to confirm that none of their assets are subject to being blocked and that they are not engaged in any activities that could be construed as violating these laws. Failure to comply with these laws, or any blocking of assets, can lead to immediate termination of the franchise agreement with Aw.
The inclusion of such a clause is increasingly common in franchise agreements to ensure that both the franchisor and franchisee are protected from potential legal and financial repercussions associated with non-compliance. Franchisees should seek legal counsel to fully understand their obligations under these laws and to ensure they can provide the required certifications accurately and truthfully.
Aw's right to terminate the agreement immediately for violations underscores the seriousness of this requirement. Franchisees must maintain ongoing compliance and immediately address any potential issues to avoid jeopardizing their franchise agreement.