What are the consequences of a misrepresentation or violation of Anti-Terrorism Laws by a Floyds 99 franchisee?
Floyds_99 Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee certifies that it has no knowledge or information that, if generally known, would result in Franchisee or its principals, its employees, or anyone else associated with Franchisee to be listed in the Annex. Franchisee understands that it is solely responsible for ascertaining what actions it must take to comply with the Anti-Terrorism Laws. Any misrepresentation by Franchisee under this Section or any violation of the Anti-Terrorism Laws by Franchisee, its principals, its employees, or their respective affiliates shall constitute grounds for immediate termination of this Agreement, and any other Agreement Franchisee has entered into
Source: Item 22 — CONTRACTS (FDD pages 57–58)
What This Means (2025 FDD)
According to the 2025 Floyds 99 Franchise Disclosure Document, a franchisee's misrepresentation or violation of Anti-Terrorism Laws can lead to serious repercussions. Specifically, any misrepresentation made by the franchisee or any violation of Anti-Terrorism Laws by the franchisee, its principals, employees, or their affiliates, constitutes grounds for immediate termination of the Franchise Agreement. This means Floyds 99 has the right to terminate the agreement immediately if such a violation occurs.
This provision underscores the importance Floyds 99 places on compliance with Anti-Terrorism Laws. The FDD defines "Anti-Terrorism Laws" as Executive Order 13224 issued by the President of the United States, the Terrorism Sanctions Regulations (Title 31, Part 595 of the U.S. The franchisee is expected to fully comply with these laws and assist Floyds 99 in its compliance efforts.
For a prospective Floyds 99 franchisee, this means they must ensure full compliance with all Anti-Terrorism Laws. This includes ensuring that neither the franchisee nor its principals have property or interests that are subject to being "blocked" under these laws and that they are not otherwise in violation of any Anti-Terrorism Laws. Failure to do so not only risks immediate termination of the franchise agreement but also any other agreements the franchisee may have with Floyds 99 or its affiliates. This highlights the critical need for franchisees to conduct thorough due diligence and maintain ongoing compliance to avoid such severe penalties.