What is the consequence if a Casiola franchisee violates any Anti-Terrorism Laws?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisee, an Owner, or Franchisee's employees violate any of the Anti-Terrorism Laws and/or become listed on the Annex to
Executive Order 13244, then Franchisor may terminate this Agreement immediately without prior notice to Franchisee.
In connection with Franchisee's compliance with the terms of this Article 7.H., if Franchisee discovers, learns of, and/or becomes aware of any conflict and/or discrepancy between Franchisee's obligations under this Article 7.H. with Franchisor's standards and/or specifications as contained in this Agreement, in the Operations Manual, and/or as otherwise designated by Franchisor from time to time, Franchisee shall immediately notify Franchisor in writing of such discrepancy. In the event of any conflict or ambiguity, Franchisor's determination and/or resolution made by Franchisor, in writing, and, specifically with regard to the presented conflict or ambiguity, shall be determinative as between Franchisor and Franchisee and the operations of the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, if a franchisee, an owner, or the franchisee's employees violate any Anti-Terrorism Laws or become listed on the Annex to Executive Order 13244, Casiola has the right to terminate the Franchise Agreement immediately without prior notice to the franchisee. Anti-Terrorism Laws are defined as Executive Order 13224, the USA PATRIOT Act, and all other federal, state, and local laws, ordinances, regulations, policies, lists, and requirements related to terrorist acts and acts of war.
Casiola requires franchisees and their owners to certify, represent, and warrant that their property and interests are not subject to being "blocked" under any Anti-Terrorism Laws and that they are not otherwise in violation of these laws. Franchisees must also certify that they and their owners are not listed on the Annex to Executive Order 13244 and will not become listed, hire anyone listed, or have dealings with anyone listed.
The franchisee is obligated to immediately notify Casiola if they or any owner becomes listed. This requirement emphasizes the importance Casiola places on compliance with Anti-Terrorism Laws and the serious repercussions that can arise from any violations. The immediate termination clause underscores the potential risks for a franchisee who fails to comply with these laws.