What representation does Buildingstars require from the franchisee regarding the intent to use funds generated from the franchise to support terrorist activity?
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' 2025 Franchise Disclosure Document, franchisees must make certain representations regarding terrorist activities. Specifically, the franchisee must represent that they are not acquiring the rights granted under the Franchise 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. This representation is part of Buildingstars' broader effort to comply with U.S. laws, including Executive Order 13224.
This requirement means that a prospective Buildingstars franchisee must certify that their intentions in operating the franchise are not connected to any form of terrorist financing or support. This is a legal obligation under U.S. law, and Buildingstars incorporates this obligation into its franchise agreement to ensure compliance.
For a potential franchisee, this clause underscores the importance of understanding and adhering to all legal requirements associated with operating a Buildingstars franchise. It also highlights the need for transparency and ethical conduct in all business dealings related to the franchise.