What representation does a Buildingstars franchisee make regarding the intent to generate funds for terrorist activities?
Buildingstars Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, franchisees make specific representations regarding terrorist activities. As part of the franchise agreement, a Buildingstars franchisee represents that they are not acquiring franchise rights with the intention of generating funds to support any individual or entity involved in terrorist activities. This representation also extends to not supporting or furthering any terrorist activity through the franchise.
This representation is a legal commitment by the franchisee, ensuring compliance with U.S. laws, including Executive Order 1224, which prohibits transactions with individuals or entities engaged in terrorism. This clause aims to prevent the Buildingstars franchise from being used, directly or indirectly, to fund or support terrorism.
For a prospective Buildingstars franchisee, this means understanding and agreeing to these terms is a prerequisite for obtaining a franchise. It highlights the importance of ethical and legal compliance within the Buildingstars franchise system. Franchisees must ensure their business operations align with these representations to avoid potential legal ramifications and maintain the integrity of the Buildingstars brand.