What constitutes grounds for immediate termination of the Face Foundrie franchise agreement regarding Anti-Terrorism Laws?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
already employed, retain the employment of) any individual who is listed in the Annex. (A copy of the Annex can be accessed on the Internet at the following address: http://www.treasury.gov/offices/enforcement/ofac/sanctions/terrorism.html.)
- (d) Franchisee is solely responsible for ascertaining what actions it must take to comply with the Anti-Terrorism Laws, and Franchisee specifically acknowledges and agrees that Franchisee's indemnification responsibilities set forth in Section 17.02 above of this Agreement pertain to Franchisee's obligations under this Section 19.16.
- (e) Any misrepresentation under this Section or any violation of the Anti-Terrorism Laws by Franchisee or Franchisee's Owners, agents, bankers, employees and Affiliates shall constitute grounds for immediate termination of this Agreement and any other agreement Franchisee has entered into with Franchisor or an Affiliate thereof, in accordance with Section 14.02 above.
- 19.17 Timing. Franchisee acknowledges that it has had a copy of Franchisor's franchise disclosure document for at least fourteen (14) calendar days before signing this Agreement or any franchise or related agreement; or at least fourteen (14) calendar days before the payment of any consideration to Franchisor. Franchisee has had the opportunity to have this Agreement and the Facial Bar offered hereunder reviewed by professionals of Franchisee's choosing before executing this Agreement.
- 19.18 Disavowal of Oral Representations.
Source: Item 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, there are several actions related to Anti-Terrorism Laws that can lead to the immediate termination of the franchise agreement. These include any misrepresentation regarding compliance with Anti-Terrorism Laws, or any actual violation of these laws by the franchisee, their owners, agents, bankers, employees, or affiliates. This is a significant point for prospective franchisees, as it places a strict obligation on them to ensure full compliance and accurate representation in this area.
The FDD specifies that failing to comply with all applicable laws and ordinances related to the Facial Bar, including Anti-Terrorism Laws, can result in immediate termination. This also applies if the franchisee's or any of its owner's assets, property, or interests are blocked under any law, ordinance, or regulation relating to terrorist activities, or if the franchisee or any of its owners otherwise violate any such law, ordinance, or regulation.
Face Foundrie requires franchisees and their owners to certify, represent, and warrant that none of their property or interests is subject to being "blocked" under any of the Anti-Terrorism Laws and that they are not otherwise in violation of these laws. Franchisees are also responsible for determining what actions they must take to comply with Anti-Terrorism Laws. This highlights the importance of due diligence and ongoing compliance efforts for anyone considering investing in a Face Foundrie franchise. The franchisee's indemnification responsibilities also extend to their obligations under the Anti-Terrorism Laws section of the agreement.