Regarding the Anti-Terrorism Representation, does Fat Shack require the franchisee to represent that they are not associated with persons or entities described in Executive Order 13224?
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 represent that they, and all persons or entities holding any legal or beneficial interest in the franchisee entity, are not associated with persons or entities referred to or described in Executive Order 13224. This order blocks property and prohibits transactions with persons who commit, threaten to commit, or support terrorism, as amended.
This representation is a standard practice in franchising to ensure compliance with U.S. anti-terrorism laws and regulations. By requiring this representation, Fat Shack aims to protect its brand and reputation by avoiding any association with individuals or groups involved in terrorism.
For a prospective Fat Shack franchisee, this means they must ensure that neither they nor any individuals or entities with a financial interest in their franchise are on any prohibited lists related to terrorism. Failure to comply with this representation could have serious legal and financial consequences, including potential termination of the franchise agreement.