Does the Cinnaholic Development Agreement define 'Anti-Terrorism Laws' in the context of termination?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
r or Developer's representative.
31. COUNTERPARTS
This Agreement may be signed in multiple counterpart copies, each of which will be deemed an original.
32. DEVELOPER'S ACKNOWLEDGMENTS
32.1. Success Depends on Developer and No Warranties. Developer assumes sole responsibility for the operation of the business franchised hereunder and acknowledges that, while Franchisor may furnish advice and assistance to Developer from time to time during the term of this Agreement, Franchisor has no legal or other obligation to do so except as specifically set forth herein.
32.2. Anti-Terrorism Laws.
- (i) Developer and its owners agree to comply with and/or to assist Franchisor to the fullest extent possible in Franchisor's efforts to comply with Anti-Terrorism Laws. In connection with such compliance, Developer and its owners certify, represent, and warrant that none of their property or interests is subject to being "blocked" under any of the Anti-Terrorism Laws and that Developer and its owners are not otherwise in violation of any of the Anti-Terrorism Laws.
- (ii) "Anti-Terrorism Laws" means Executive Order 13224 issued by the President of the United States ("Executive Order 13224"), the Terrorism Sanctions Regulation (Title 31, Part 595 of the U.S. Code of Federal Regulations), the Foreign Terrorist Organizations Sanctions Regulations (Title 31, Part 597 of the U.S. Code of Federal Regulations), the Cuban Assets Control Regulations (Title 31, Part 515 of the U.S. Code of Federal Regulations), 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 (including, without limitation, the United States Department of Treasury Office of Foreign Assets Control, and any other government agency with jurisdiction over the parties to this Agreement and/or their actions) addressing or in any way relating to terrorist acts and/or acts of war.
- (iii) Developer and its owners certify that none of them, their respective employees, agents, bankers, affiliates or anyone associated with them is listed in the Annex to Executive Order 13224. Developer agrees not to hire (or, if already employed, retain the employment of) any individual who is listed in the Annex.
Source: Item 23 — RECEIPT (FDD pages 62–269)
What This Means (2025 FDD)
According to Cinnaholic's 2025 Franchise Disclosure Document, the Development Agreement does define "Anti-Terrorism Laws." Specifically, the document states that failure to comply with any federal, state, or local law or regulation applicable to the operation of the franchise, including any failure to comply with the Anti-Terrorism Laws as defined in Section 32.2, can result in immediate termination of the agreement by Cinnaholic.
The definition of "Anti-Terrorism Laws" includes Executive Order 13224 issued by the President of the United States, the Terrorism Sanctions Regulation, the Foreign Terrorist Organizations Sanctions Regulations, the Cuban Assets Control Regulations, 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 relating to terrorist acts and/or acts of war.
Cinnaholic requires that the developer and its owners agree to comply with and assist Cinnaholic in complying with Anti-Terrorism Laws to the fullest extent possible. They must certify, represent, and warrant that none of their property or interests is subject to being "blocked" under any of the Anti-Terrorism Laws and that they are not otherwise in violation of any of these laws. Furthermore, developers must certify that none of their employees, agents, bankers, affiliates, or anyone associated with them is listed in the Annex to Executive Order 13224 and agree not to hire anyone listed in the Annex.