Does the Gokhale Method agreement prohibit transactions with persons engaged in terrorism?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
compliance.
- 17.3. Compliance With Anti-Terrorism Laws. You acknowledge that under applicable U.S. law, including, without limitation, Executive Order 13224, signed on September 23, 2001 (the "Executive Order"), we are prohibited from engaging in any transaction with any person engaged in, or with a person aiding any person engaged in, acts of terrorism, as defined in the Executive Order. Accordingly, you represent and warrant to us that as of the date of this Agreement, neither you nor any person holding any Ownership Interest in you, controlled by you, or under common control with you, are designated under the Executive Order as a person with whom business may not be transacted by us, and that you (a) do not, and hereafter shall not, engage in any terrorist activity; (b) are not affiliated with and do not support any individual or entity engaged in, contemplating, or supporting terrorist activity; and (c) are not acquiring the rights granted under this Agreement with the intent to generate funds to channel to any individual or entity engaged in, contemplating, or supporting terrorist activity, or to otherwise support or further any terrorist activity.
- 17.4.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to Gokhale Method's 2024 Franchise Disclosure Document, the franchise agreement includes clauses related to compliance with anti-terrorism laws. Specifically, Gokhale Method is prohibited under U.S. law, including Executive Order 13224, from engaging in any transaction with individuals or entities involved in terrorism. This is a standard clause in franchise agreements to ensure compliance with federal regulations.
The agreement requires franchisees to represent and warrant that, as of the agreement date, neither they nor anyone with an ownership interest in them are designated under the Executive Order as persons with whom Gokhale Method cannot transact business. Furthermore, franchisees must affirm that they do not engage in terrorist activity, are not affiliated with or supporting any individual or entity involved in terrorist activity, and are not acquiring rights under the agreement to fund or support any terrorist activity.
This clause ensures that Gokhale Method and its franchisees comply with U.S. anti-terrorism laws, protecting the brand from potential legal and reputational risks associated with doing business with individuals or entities involved in terrorism. Prospective franchisees should understand these obligations and ensure they meet these requirements to avoid potential breaches of the franchise agreement.