In the Anti-Terrorism Representation, does Fat Shack require the franchisee to represent that all persons or entities holding any legal or beneficial interest in the franchisee entity are not providing support to persons who commit or threaten to commit terrorism?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee represents to FSI that it and all persons or entities holding any legal or beneficial interest whatsoever in Franchisee entity are not included in, owned by, acting for or on behalf of, providing assistance, support, sponsorship, or services of any kind to, or otherwise associated with any of the persons or entities referred to or described in Executive Order 13224-Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism, as amended.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, franchisees must make an Anti-Terrorism Representation. This means that as part of the franchise agreement, the franchisee must represent to Fat Shack Inc. (FSI) that neither they nor anyone holding a legal or beneficial interest in their franchise entity is involved with or supporting individuals or groups associated with terrorism.
Specifically, the franchisee must represent that they and all related parties are not included in, owned by, acting for or on behalf of, providing assistance, support, sponsorship, or services to, or otherwise associated with any persons or entities described in Executive Order 13224. This executive order blocks property and prohibits transactions with individuals or entities who commit, threaten to commit, or support terrorism.
This representation is a legal requirement and ensures that Fat Shack is not associated with or supporting any individuals or groups involved in terrorist activities. It is a standard clause in many franchise agreements to comply with anti-terrorism laws and regulations.