What are 'Anti-Terrorism Laws' as defined in the Cordova franchise agreement?
Cordova Franchise · 2025 FDDAnswer from 2025 FDD Document
h 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.
Source: Item 23 — RECEIPTS (FDD pages 44–195)
What This Means (2025 FDD)
According to Cordova's 2025 Franchise Disclosure Document, the franchise agreement defines "Anti-Terrorism Laws" broadly. It includes 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. Franchisees and their owners must not be listed on the Annex to Executive Order 13244, and they must not hire or deal with anyone so listed. Franchisees must immediately notify Cordova if they or any owner becomes listed. Cordova can terminate the agreement immediately if a franchisee, owner, or employee violates any Anti-Terrorism Laws or becomes listed on the Annex.
Cordova requires franchisees to comply with these laws and assist Cordova in its compliance efforts. Franchisees must certify 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. This places a significant responsibility on the franchisee to stay informed about and adhere to all applicable anti-terrorism regulations, which can be complex and subject to change.
This clause is fairly standard in franchise agreements to ensure the franchisor and its franchisees are compliant with federal regulations. Prospective Cordova franchisees should understand the breadth of these laws and the potential consequences of non-compliance, including potential termination of the franchise agreement. Franchisees should consult with legal counsel to ensure they fully understand their obligations under these laws.