What constitutes good cause for immediate termination of the Boulder Designs franchise agreement related to Anti-Terrorism Laws?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Franchisee's owners agree to comply, and to assist Franchisor to the fullest extent possible in our efforts to comply with Anti-Terrorism Laws (defined below). In connection with that compliance, Franchisee and Franchisee's owners certify, represent, and warrant that none of Franchisee's property or interests is subject to being blocked under, and that Franchisee and Franchisee's owners otherwise are not in violation of, any of the Anti-Terrorism Laws. "Anti-Terrorism Laws" mean Executive Order 13224 issued by the President of the United States, the USA PATRIOT ACT, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and 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 Franchisee or Franchisee's owners, or any blocking of Franchisee or Franchisee owners' assets under the Anti-Terrorism Laws, shall constitute good cause for immediate termination of this Agreement, as provided in Section 17.2 below.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, a franchisee's failure to comply with Anti-Terrorism Laws constitutes good cause for immediate termination of the franchise agreement. These laws include Executive Order 13224, the USA PATRIOT ACT, and all other federal, state, and local laws, ordinances, regulations, policies, and requirements related to terrorist acts and acts of war.
Specifically, if a franchisee's property or interests become subject to being blocked under any Anti-Terrorism Laws, or if the franchisee is otherwise found to be in violation of these laws, Boulder Designs has grounds for immediate termination. This also applies to the franchisee's owners.
This provision places a significant responsibility on the franchisee and their owners to ensure full compliance with all applicable Anti-Terrorism Laws. Failure to do so not only carries legal consequences but also risks the immediate loss of the Boulder Designs franchise.