What representation does the Developer make to Carls Jr. regarding terrorist activity?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
or under common control with Developer is designated under the Order as a person with whom business may not be transacted by CJR, and that Developer: (1) does not, and hereafter shall not, engage in any terrorist activity; (2) is not affiliated with and does not support any individual or entity engaged in, contemplating or supporting terrorist activity; and (3) 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 23 — RECEIPTS (FDD pages 76–364)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, the developer makes certain representations regarding terrorist activities. Specifically, the developer must confirm that neither they nor any entity under their common control is designated under any order prohibiting business transactions with Carls Jr.
Furthermore, the developer must represent that they do not currently engage in any terrorist activity and will not do so in the future. They also affirm that they are not affiliated with or supportive of any individual or entity involved in terrorist activities.
Finally, the developer warrants that they are not acquiring the franchise rights with the intention of generating funds to support any individual or entity engaged in, contemplating, or supporting terrorist activity, or to otherwise further any terrorist activity. This comprehensive representation aims to ensure that Carls Jr. does not inadvertently support or become associated with any form of terrorism through its franchisees.