Under what conditions related to Anti-Terrorism Laws can the Crave franchise agreement be immediately terminated?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
You and your Principals agree to comply, and to assist us to the fullest extent possible in our efforts to comply, with Anti-Terrorism Laws (defined below). In connection with that compliance, you and your Principals certify, represent, and warrant that none of your property or interests is subject to being blocked under, and that you and your Principals otherwise are not in violation of, any of the Anti-Terrorism Laws. "Anti-Terrorism Laws" mean 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 other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism Laws by you or your Principals, or any blocking of your or your Principals' assets under the Anti-Terrorism Laws, shall constitute good cause for immediate termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
According to Crave's 2025 Franchise Disclosure Document, the franchise agreement can be immediately terminated if the franchisee or their principals violate Anti-Terrorism Laws or if their assets are blocked under these laws. The FDD defines "Anti-Terrorism Laws" as Executive Order 13224, the USA PATRIOT Act, and all other federal, state, and local laws, ordinances, regulations, policies, lists, and requirements related to terrorist acts and acts of war.
This means that a Crave franchisee must ensure that neither they nor any of their principals are in violation of any anti-terrorism laws. They must also ensure that their property and interests are not subject to being blocked under any of these laws. Failure to comply with these laws can result in the immediate termination of the franchise agreement.
This clause is included to ensure that Crave complies with all applicable laws and regulations and to protect its brand and reputation. Franchisees should be aware of these requirements and take steps to ensure that they are in compliance. This is a fairly standard clause in franchise agreements today, given increased regulatory scrutiny and enforcement around anti-terrorism and related financial regulations.