Under what conditions can the Hyper Kidz franchise agreement be immediately terminated due to violations of Anti-Terrorism Laws?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
You and your Principals agree to comply, and to assist us to the fullest extent possible in our efforts to comply, with Anti-Terrorism Laws (defined below). In connection with that compliance, you and your Principals certify, represent, and warrant that none of your property or interests is subject to being blocked under, and that you and your Principals otherwise are not in violation of, any of the Anti-Terrorism Laws. "Anti-Terrorism Laws" mean Executive Order 13224 issued by the President of the United States, the USA PATRIOT Act, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism Laws by you or your Principals, or any
blocking of your or your Principals' assets under the Anti-Terrorism Laws, shall constitute good cause for immediate termination of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, the franchise agreement can be immediately terminated if the franchisee or their principals violate Anti-Terrorism Laws or if their assets are blocked under these laws. Anti-Terrorism Laws are defined as Executive Order 13224, the USA PATRIOT Act, and all other federal, state, and local laws, ordinances, regulations, policies, and requirements relating to terrorist acts and acts of war.
This means that Hyper Kidz franchisees must ensure they and their principals comply with all relevant Anti-Terrorism Laws. This includes ensuring that none of their property or interests are subject to being blocked under these laws. Failure to comply can result in immediate termination of the franchise agreement, which would lead to the loss of the franchise and its associated revenue.
For a prospective Hyper Kidz franchisee, this underscores the importance of understanding and adhering to all applicable laws, including those related to anti-terrorism. It also highlights the need to ensure that all principals involved in the franchise are also in compliance. This requirement is stricter than many standard franchise agreements, which usually allow a cure period for legal violations.