What is the 'Order' referenced in the Body20 franchise agreement regarding terrorist acts?
Body20 Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that under applicable U.S. law, including Executive Order 13224, signed on September 23, 2001 (the "Order"), we are prohibited from engaging in any transaction with any person engaged in, or with a person aiding any person
engaged in, acts of terrorism, as defined in the Order. Accordingly, you represent and warrant to us that, as of the date of this Agreement, neither no Franchisee Party is designated under the Order as a person with whom business may not be transacted by us, and that you: (i) do not, and hereafter will not, engage in any terrorist activity; (ii) are not affiliated with and do not support any individual or Entity engaged in, contemplating, or supporting terrorist activity; and (iii) are not acquiring the rights granted under this Agreement with the intent to generate funds to channel to any individual or Entity engaged in, contemplating, or supporting terrorist activity, or to otherwise support or further any terrorist activity.
Source: Item 23 — RECEIPT (FDD pages 74–251)
What This Means (2025 FDD)
According to Body20's 2025 Franchise Disclosure Document, the "Order" referenced in the franchise agreement pertains to U.S. law, specifically Executive Order 13224, signed on September 23, 2001. This order prohibits Body20 from engaging in any transactions with individuals or entities involved in terrorist activities.
As part of the franchise agreement, a prospective Body20 franchisee must acknowledge this order and represent and warrant that they are not designated under the Order as someone with whom Body20 is prohibited from conducting business. Furthermore, the franchisee must affirm that they do not engage in terrorist activities, are not affiliated with or supporting any individuals or entities involved in terrorism, and are not acquiring franchise rights to generate funds for terrorist activities.
This clause ensures that Body20 complies with U.S. law and prevents the franchise from being used to support or facilitate terrorism. It places a legal and ethical obligation on the franchisee to conduct business in a manner that does not violate these regulations. This is a fairly standard clause in franchise agreements, particularly for international brands, to ensure compliance with various national and international laws concerning financial transactions and security.