Under what conditions can Deer Solution terminate the franchise agreement immediately related to 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, Deer Solution can terminate the franchise agreement immediately if the franchisee, an owner, or the franchisee's employees violate any Anti-Terrorism Laws. Additionally, immediate termination is possible if the franchisee or an owner becomes listed on the Annex to Executive Order 13244. No prior notice is required for termination under these circumstances.
The Anti-Terrorism Laws, as defined in the FDD, include 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.
This clause places a significant responsibility on the franchisee and its owners to ensure compliance with all applicable Anti-Terrorism Laws. The franchisee must also ensure that neither they nor their owners are listed on the Annex to Executive Order 13244, as such a listing could lead to immediate termination of the franchise agreement. This requirement is not uncommon, as franchisors need to protect their brand and reputation, and association with terrorism could be significantly damaging.