Are Casiola franchisees required to assist the Franchisor in complying with Anti-Terrorism Laws?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (6) Franchisee shall comply with, and cause Franchisee's Owners to comply with and/or to assist Franchisor, to the fullest extent possible, in Franchisor's efforts to comply with Anti-Terrorism Laws (as defined below).
In connection with such compliance, Franchisee and each Owner certify, represent, and warrant that Franchisee's or any Owner's property or interests is not subject to being "blocked" under any of the Anti-Terrorism Laws, and Franchisee and each Owner are not otherwise in violation of any of the Anti-Terrorism Laws.
Franchisee further certifies that Franchisee and each Owner are not listed on the Annex to Executive Order 13244 (the Annex is available at http://www.treasury.gov) and will not become so listed, hire any person so listed, or have dealings with any person so listed.
Franchisee agrees to immediately notify Franchisor if Franchisee or any Owner becomes so listed. "Anti-Terrorism Laws" refers to and means 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 any other requirements of any governmental authority addressing, or in any way relating to, terrorist acts and acts of war.
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, franchisees are required to comply with and assist Casiola in complying with Anti-Terrorism Laws. This obligation extends not only to the franchisee but also to the franchisee's owners.
The FDD specifies that franchisees and their owners must certify that their property and interests are not subject to being "blocked" under any Anti-Terrorism Laws and that they are not in violation of these laws. Furthermore, franchisees must certify that they and their owners are not listed on the Annex to Executive Order 13244 and will not hire or deal with anyone so listed. Franchisees are obligated to immediately notify Casiola if they or any owner becomes listed.
"Anti-Terrorism Laws" are defined broadly to include Executive Order 13224, the USA PATRIOT Act, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and any other requirements of any governmental authority addressing or relating to terrorist acts and acts of war. Violation of these laws by the franchisee, an owner, or the franchisee's employees, or being listed on the Annex to Executive Order 13244, can result in immediate termination of the Franchise Agreement by Casiola without prior notice.
Franchisees are also obligated to inform Casiola in writing of any conflicts or discrepancies between their obligations under this clause and Casiola's standards or specifications as outlined in the Franchise Agreement, Operations Manual, or as otherwise designated by Casiola. In case of any conflict or ambiguity, Casiola's written determination will be decisive.