Under what conditions related to Anti-Terrorism Laws can the Byrider Franchise Agreement be immediately terminated?
Byrider Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.18 Compliance with Anti-Terrorism Laws. Franchisee and Franchisee's owners agree to comply, and to assist the Company to the fullest extent possible in Company's 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's or Franchisee's owners' assets under the Anti-Terrorism Laws, shall constitute good cause for immediate termination of this Agreement, as provided in Section 16.2(A)(14) above.
Source: Item 23 — Receipts (FDD pages 88–335)
What This Means (2025 FDD)
According to Byrider's 2025 Franchise Disclosure Document, the Franchise Agreement can be immediately terminated if the franchisee or the franchisee's owners violate Anti-Terrorism Laws or if their assets are blocked under these laws. Anti-Terrorism Laws are defined as Executive Order 13224, the USA PATRIOT Act, and all other present and future federal, state, and local laws related to terrorist acts and acts of war.
Byrider requires franchisees and their owners to comply with Anti-Terrorism Laws and to assist Byrider in its compliance efforts. Franchisees must certify, represent, and warrant that none of their property or interests is subject to being blocked under these laws and that they are not in violation of any Anti-Terrorism Laws.
This provision highlights the importance Byrider places on adhering to legal and regulatory requirements related to anti-terrorism. For a prospective franchisee, this means undergoing thorough due diligence to ensure compliance and avoid any actions that could be construed as a violation, which could lead to immediate termination of the franchise agreement. Franchisees should stay informed about any changes to Anti-Terrorism Laws and implement appropriate measures to ensure ongoing compliance.