Does the Buildingstars franchise agreement require the franchisee to warrant that they are not affiliated with any individual or entity engaged in terrorist activity?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. FRANCHISEE and its guarantors represent and warrant that the execution, delivery and performance of this Agreement by FRANCHISEE and the Guarantee and Assumption of Obligations by the guarantors do not and will not violate, conflict with or result in the breach of any term, condition or provision of any contract or agreement, or require the consent of any other person or entity.
- C. Under applicable U.S. Law, including without limitation executive order 1224, signed on September 23, 2001 (the "Order"), FRANCHISEE is 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, FRANCHISEE does not and hereafter will not engage in any terrorist activity. In addition, FRANCHISEE is not affiliated with and does not support any individual or entity engaged in, contemplating, or supporting terrorist activity. Finally, FRANCHISEE is 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 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to Buildingstars's 2025 Franchise Disclosure Document, the franchise agreement includes a clause related to terrorist activity. Specifically, the franchisee must warrant that they are not affiliated with or supportive of any individual or entity engaged in terrorist activities. This requirement is rooted in U.S. Law, including Executive Order 1224 signed on September 23, 2001.
This provision means that a prospective Buildingstars franchisee must affirm their compliance with U.S. laws regarding terrorism. They must also confirm that they will not engage in any transactions with individuals or entities involved in terrorist acts, as defined by the Executive Order. Furthermore, the franchisee must declare that they are not acquiring the franchise rights with the intention of using the generated funds to support any terrorist activity.
For a potential Buildingstars franchisee, this clause underscores the importance of adhering to all applicable laws and regulations. It also highlights the need to ensure that their business operations do not inadvertently support or facilitate any form of terrorist activity. This requirement is a standard practice in many franchise agreements to ensure legal and ethical compliance.