What representation does a Carls Jr. franchisee make regarding terrorist activity?
Carls_Jr Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that under applicable U.S. law, including, without limitation, Executive Order 13224, signed on September 23, 2001 ("Order"), CJR 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 represents and warrants to CJR that as of the date of this Agreement, neither Franchisee nor any person holding any ownership interest in Franchisee, controlled by Franchisee, or under common control with Franchisee is designated under the Order as a person with whom business may not be transacted by CJR, and that Franchisee: (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 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.
Source: Item 22 — CONTRACTS (FDD pages 75–76)
What This Means (2025 FDD)
According to the 2025 Carls Jr. Franchise Disclosure Document, a franchisee must acknowledge and comply with U.S. laws, including Executive Order 13224, which prohibits transactions with individuals or entities engaged in or supporting terrorism.
Specifically, the franchisee represents and warrants to Carls Jr. that neither the franchisee nor anyone with an ownership interest in the franchise is designated under the Order as someone with whom business is prohibited. The franchisee also affirms that they will not engage in any terrorist activity, are not affiliated with or supporting any individual or entity involved in terrorist activity, and are not acquiring the franchise rights to generate funds for terrorist activities.
This clause ensures that Carls Jr. complies with U.S. law and prevents the franchise from being used to support illegal activities. It is a standard provision in franchise agreements to protect the brand and ensure ethical business practices. A prospective franchisee should understand the implications of this representation and ensure full compliance to avoid potential legal issues and termination of the franchise agreement.