Does the Gokhale Method agreement require franchisees to warrant they are not affiliated with individuals or entities engaged in terrorist activity?
Gokhale_Method Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 34)
What This Means (2024 FDD)
According to the 2024 Gokhale Method Franchise Disclosure Document, franchisees must warrant that they and related parties are not involved in or supportive of terrorist activities. This requirement is in accordance with U.S. law, specifically Executive Order 13224, which prohibits Gokhale Method from engaging in transactions with individuals or entities involved in terrorism.
Specifically, the franchisee must represent and warrant that neither they nor anyone holding an ownership interest in them, controlled by them, or under common control with them is designated under the Executive Order as someone with whom Gokhale Method cannot conduct business. Furthermore, the franchisee must warrant that they do not engage in terrorist activity, are not affiliated with or support any individual or entity involved in terrorist activity, and are not acquiring franchise rights to generate funds for terrorist activities.
This clause ensures Gokhale Method's compliance with anti-terrorism laws and protects the brand from potential legal and reputational risks associated with franchisees involved in such activities. For a prospective franchisee, this means they must be prepared to affirm their non-involvement in any form of terrorist activity and ensure that their business operations do not directly or indirectly support such activities.