What constitutes grounds for immediate termination of the Aw Franchise Agreement related to Anti-Terrorism Laws?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a violation of Anti-Terrorism Laws by the franchisee, their owners, or their employees, or the "blocking" of any of their assets under these laws, constitutes grounds for immediate termination of the Franchise Agreement. The franchisee and their owners must comply with Anti-Terrorism Laws, which include Executive Order 13224, the USA PATRIOT Act, and all other federal, state, and local laws related to terrorist acts and acts of war.
This means that if a franchisee or anyone associated with the franchise is found to be in violation of these laws, Aw has the right to immediately terminate the agreement. This could include actions such as providing support to terrorist organizations or being placed on a government list of blocked individuals or entities. The franchisee also agrees to assist Aw in complying with Anti-Terrorism Laws to the fullest extent possible.
For a prospective Aw franchisee, this highlights the importance of understanding and adhering to all Anti-Terrorism Laws. It also emphasizes the need to ensure that all owners and employees are also in compliance. Failure to do so could result in the immediate loss of the franchise and any associated investment. This clause is in place to protect Aw from any legal or reputational damage that could result from association with individuals or entities involved in terrorism.