What are the consequences if a Bang Cookies franchisee's employee violates any of the Anti-Terrorism Laws?

According to Bang Cookies' 2024 Franchise Disclosure Document, if a franchisee's employee violates any Anti-Terrorism Laws or becomes listed on the Annex to Executive Order 13244, Bang Cookies has the right to terminate the Franchise Agreement immediately. This termination can occur without any prior notice to the franchisee. Anti-Terrorism Laws are defined as Executive Order 13224, the USA PATRIOT Act, and all other federal, state, and local laws related to terrorist acts and acts of war.

This clause places a significant responsibility on the Bang Cookies franchisee to ensure that neither they, their owners, nor their employees are in violation of any Anti-Terrorism Laws. The franchisee must also ensure they are not listed on the Annex to Executive Order 13244, which is accessible on the Treasury Department's website. The franchisee is obligated to notify Bang Cookies immediately if they or any owner becomes listed.

The immediate termination clause means a franchisee could lose their entire investment and the right to operate the Bang Cookies franchise if an employee violates these laws. This is a stringent measure, highlighting the importance Bang Cookies places on compliance with Anti-Terrorism Laws. Franchisees in other systems are also generally expected to comply with all laws, but immediate termination for employee actions related to terrorism is a particularly strong penalty.

Prospective Bang Cookies franchisees should carefully review the definition and scope of Anti-Terrorism Laws and ensure they have systems in place to prevent any violations by themselves, their owners, or their employees. They should also understand the implications of being listed on the Annex to Executive Order 13244 and take steps to avoid such a listing.