Under what circumstances related to terrorist activities can the Carvel franchise agreement be terminated?
Carvel Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your Owners agree to comply, and to assist us to the fullest extent possible in our efforts to comply, with Anti-Terrorism Laws (defined below).
In connection with that compliance, you and your owners certify, represent, and warrant that none of your property or interests is subject to being blocked under, and that you and your 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 you or your Owners, or any blocking of your or your Owners' assets under the Anti-Terrorism Laws, shall constitute good cause for immediate termination of this Agreement, as provided in Section 17.2.H. (violation of law relating to terrorist activities).
Source: Item 23 — Receipts (FDD pages 100–353)
What This Means (2025 FDD)
According to Carvel's 2025 Franchise Disclosure Document, the franchise agreement can be terminated immediately if there are violations of anti-terrorism laws. Carvel requires that franchisees and their owners comply with all Anti-Terrorism Laws, which include Executive Order 13224, the USA PATRIOT Act, and all other federal, state, and local laws, ordinances, regulations, policies, lists, and other governmental requirements relating to terrorist acts and acts of war. Franchisees and their owners must certify that their property and interests are not subject to being blocked under these laws and that they are not in violation of any Anti-Terrorism Laws.
Any violation of these laws by the franchisee or their owners, or any blocking of their assets under these laws, constitutes grounds for immediate termination of the Carvel Franchise Agreement. This is referenced in Section 17.2.H of the agreement, which addresses violations of law relating to terrorist activities.
This clause highlights the importance Carvel places on compliance with anti-terrorism legislation. For a prospective franchisee, this means ensuring not only their own compliance but also understanding the implications for any owners involved in the franchise. Failure to adhere to these laws can result in the immediate loss of the franchise.