If a Cinnaholic franchisee violates Anti-Terrorism Laws, what agreements can be terminated?

According to Cinnaholic's 2025 Franchise Disclosure Document, a franchisee's violation of Anti-Terrorism Laws can lead to the termination of the Franchise Agreement and any other agreements the franchisee has with Cinnaholic or its affiliates. This includes violations by the franchisee, their owners, agents, bankers, employees, and affiliates. The FDD specifies that this provision falls under Section 21.2(xvi).

Cinnaholic defines Anti-Terrorism Laws broadly, encompassing various federal regulations and executive orders related to terrorist acts and war. These include the Bank Secrecy Act, the Foreign Terrorist Organizations Sanctions Regulations, the Cuban Assets Control Regulations, the USA PATRIOT Act, and any requirements from governmental authorities like the United States Department of Treasury Office of Foreign Assets Control.

This clause places a significant responsibility on the franchisee to ensure compliance with all Anti-Terrorism Laws. Franchisees must proactively ascertain what actions they need to take to comply with these laws. Furthermore, the franchisee is responsible for indemnifying Cinnaholic for any failures related to these obligations, as detailed in Section 18 of the Franchise Agreement. This means that a Cinnaholic franchisee needs to be extremely diligent in ensuring that they, their employees, and anyone associated with their business are not in violation of any of these complex and evolving laws.