What are the consequences if a Deer Solution franchisee's employees violate any of the Anti-Terrorism Laws?
Deer_Solution Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall comply with, and, cause Franchisee's Owners to comply with and/or to assist Franchisor, to the fullest extent possible, in Franchisor's efforts to comply with Anti-Terrorism Laws (as defined below). In connection with such compliance, Franchisee and each Owner certify, represent, and warrant that Franchisee's or any Owner's property or interests is not subject to being "blocked" under any of the Anti-Terrorism Laws, and Franchisee and each 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.
Source: Item 23 — RECEIPTS (FDD pages 55–246)
What This Means (2025 FDD)
According to Deer Solution's 2025 Franchise Disclosure Document, if a franchisee's employees violate any of the Anti-Terrorism Laws, Deer Solution may terminate the Franchise Agreement immediately without prior notice to the franchisee. The Anti-Terrorism Laws are defined as Executive Order 13224, 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.
This is a significant risk for a prospective Deer Solution franchisee. It means that the franchisee is responsible for ensuring that their employees comply with all Anti-Terrorism Laws. Failure to do so could result in the termination of the Franchise Agreement, which would mean the loss of the franchisee's investment and the right to operate a Deer Solution business.
Franchisees should implement thorough screening and training procedures for all employees to ensure compliance with Anti-Terrorism Laws. They should also stay informed about any changes to these laws and regulations. Given the severity of the potential consequences, franchisees may want to consult with legal counsel to ensure they fully understand their obligations under the Anti-Terrorism Laws.