factual

Which section of the Face Foundrie franchise agreement outlines the termination process related to violations of Anti-Terrorism Laws?

Face_Foundrie Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (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.

Source: Item 22 — CONTRACTS (FDD pages 73–74)

What This Means (2025 FDD)

According to Face Foundrie's 2025 Franchise Disclosure Document, Section 19.16(e) of the franchise agreement specifies that any violation of Anti-Terrorism Laws by the franchisee, their owners, agents, bankers, employees, and affiliates constitutes grounds for immediate termination of the agreement. This termination would be enacted in accordance with Section 14.02 of the agreement.

This means that a Face Foundrie franchisee must ensure strict compliance with all Anti-Terrorism Laws, as any misrepresentation or violation could lead to the immediate termination of their franchise agreement. This responsibility extends not only to the franchisee but also to their owners, agents, bankers, employees, and affiliates, highlighting the broad scope of accountability.

The Anti-Terrorism Laws are defined broadly in Section 19.16(b) to include Executive Order 13224, the Terrorism Sanctions Regulation, the Foreign Terrorist Organizations Sanctions Regulations, the Cuban Assets Control Regulations, 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 relating to terrorist acts and/or acts of war. Franchisees are expected to stay informed about and adhere to these evolving legal requirements.

Section 19.16(d) further emphasizes that the franchisee is solely responsible for understanding and complying with Anti-Terrorism Laws, and that their indemnification responsibilities outlined in Section 17.02 apply to these obligations. This places a significant burden on the franchisee to ensure they are proactive in their compliance efforts and prepared to indemnify Face Foundrie for any failures in this area.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.