Under what conditions can Casiola terminate the franchise agreement immediately due to violations of Anti-Terrorism Laws?

According to the 2024 Casiola Franchise Disclosure Document, Casiola can terminate the franchise agreement immediately if the franchisee, an owner, or the franchisee's employees violate any Anti-Terrorism Laws. This also applies if they become listed on the Annex to Executive Order 13244. Casiola is not required to provide prior notice to the franchisee before terminating the agreement under these conditions.

Anti-Terrorism Laws, as defined in the FDD, include 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 relating to terrorist acts and acts of war.

This clause places a significant responsibility on the franchisee to ensure compliance with all applicable Anti-Terrorism Laws. The franchisee must also ensure that their owners and employees are in compliance. Failure to comply, or the listing of the franchisee, an owner, or an employee on the Annex to Executive Order 13244, provides Casiola with the right to terminate the franchise agreement immediately, which could result in a significant financial loss for the franchisee.