What is the definition of 'principals' in the Floyds 99 Anti-Terrorism Representation?

According to the 2025 Floyds 99 Franchise Disclosure Document, the term "principals" in the context of the Anti-Terrorism Representation refers to the franchisee and its principal shareholders, members, or owners. This definition is important because it extends the responsibility for complying with anti-terrorism laws beyond just the franchisee to include those who have a significant ownership stake in the franchise.

Floyds 99 requires that both the franchisee and its principals certify, represent, and warrant that none of their property or interests are subject to being "blocked" under any Anti-Terrorism Laws and that neither the franchisee nor any of its principals are in violation of these laws. This means that prospective franchisees and their major stakeholders must ensure they are not on any prohibited lists or otherwise in violation of anti-terrorism regulations.

This requirement is a standard practice in franchising to ensure that the franchisor is not inadvertently associated with individuals or entities involved in illegal activities. Any misrepresentation or violation of Anti-Terrorism Laws by the franchisee, its principals, employees, or their affiliates can lead to immediate termination of the Franchise Agreement with Floyds 99, highlighting the seriousness of this representation.