What is the Ben Jerrys operator's obligation regarding compliance with Anti-Terrorism Laws?
Ben_Jerrys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.9 OPERATOR agrees to comply with and/or to assist BEN & JERRY'S to the fullest extent possible in BEN & JERRY'S efforts to comply with Anti-Terrorism Laws (as defined below).
In connection with such compliance, OPERATOR certifies, represents, and
warrants that none of OPERATOR's property or interests are subject to being "blocked" under any of the Anti-Terrorism Laws, and that OPERATOR is 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 U.S. federal, state and local laws, ordinances, regulations, policies, lists and any other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism Laws by OPERATOR, OPERATOR'S employees, or any "blocking" of OPERATOR's assets under the Anti-Terrorism Laws shall constitute grounds for immediate termination of this Agreement and any other agreement OPERATOR has entered with BEN & JERRY'S or its affiliates in accordance with the termination provisions of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 133–134)
What This Means (2025 FDD)
According to Ben Jerrys's 2025 Franchise Disclosure Document, the operator must comply with Anti-Terrorism Laws to the fullest extent possible and assist Ben & Jerrys in their compliance efforts. As part of this, the operator must certify, represent, and warrant that none of their property or interests are subject to being "blocked" under any Anti-Terrorism Laws and that they are not in violation of these laws. These laws include Executive Order 13224, the USA PATRIOT Act, and all other present and future U.S. federal, state, and local laws related to terrorist acts and acts of war.
Any violation of these Anti-Terrorism Laws by the operator or their employees, or any "blocking" of the operator's assets under these laws, can result in immediate termination of the franchise agreement and any other agreements with Ben & Jerrys or its affiliates. This highlights the critical importance of adhering to these laws to maintain the franchise agreement.
This requirement is significant because it places a legal and ethical obligation on the Ben & Jerrys operator to ensure they are not involved in any activities that could be linked to terrorism. It also allows Ben & Jerrys to terminate the agreement immediately if any violations occur, protecting the brand from potential legal and reputational damage. Franchisees in many systems are required to comply with all applicable laws, but the explicit mention of anti-terrorism laws highlights the seriousness of this issue.