If an Aw franchisee's assets are 'blocked' under Anti-Terrorism Laws, what is the consequence?
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, franchisees and their owners must comply with all Anti-Terrorism Laws. These laws include Executive Order 13224, the USA PATRIOT Act, and all other federal, state, and local laws related to terrorist acts and acts of war. Franchisees must certify that their property is not subject to being "blocked" under these laws and that they are not in violation of any of these laws.
If a franchisee or their employees violate Anti-Terrorism Laws, or if any of their assets are "blocked" under these laws, it constitutes grounds for immediate termination of the Franchise Agreement. This termination can extend to any other agreements the franchisee has with Aw or its affiliates.
This clause highlights the importance Aw places on compliance with Anti-Terrorism Laws. For a prospective franchisee, this means ensuring that all business operations and personal financial dealings are fully compliant with these regulations to avoid the risk of immediate termination of the franchise agreement. Franchisees should seek legal counsel to ensure full compliance and understand the implications of these laws.