What are Mr. Sandless franchisees required to do regarding compliance with Anti-Terrorism Laws?
Mr_Sandless Franchise · 2025 FDDAnswer from 2025 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, as described in Section 9.18 below.
As used herein, "Anti-Terrorism Laws" means Executive Order 13224 issued by the President of the United States, the Terrorism Sanctions Regulations (Title 31, Part 595 of the U.S. Code of Federal Regulations), the Foreign Terrorist Organizations Sanctions Regulations (Title 31, Part 597 of the U.S. Code of Federal Regulations), the Cuban Assets Control Regulations (Title 31, Part 515 of the U.S. Code of Federal Regulations), the USA PATRIOT Act, and all other present and future federal, state and local laws, ordinances, regulations, policies lists and any other requirements of any governmental authority (including without limitation, the United States Department of Treasury Office of Foreign Assets Control) addressing or in any way relating to terrorist acts and acts of war.
Source: Item 22 — CONTRACTS (FDD page 42)
What This Means (2025 FDD)
According to Mr. Sandless's 2025 Franchise Disclosure Document, franchisees and their principals must comply with Anti-Terrorism Laws and assist Mr. Sandless in their compliance efforts. The Anti-Terrorism Laws include Executive Order 13224, Terrorism Sanctions Regulations, Foreign Terrorist Organizations Sanctions Regulations, Cuban Assets Control Regulations, the USA PATRIOT Act, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and requirements from governmental authorities, such as the United States Department of Treasury Office of Foreign Assets Control. These laws address or relate to terrorist acts and acts of war.
In practical terms, this means a Mr. Sandless franchisee must ensure their business operations do not violate any of these anti-terrorism laws. This could involve screening employees, vendors, and customers against lists of known or suspected terrorists, implementing procedures to prevent the business from being used to finance terrorism, and cooperating with any investigations or requests from law enforcement or regulatory agencies.
The franchisee's obligation to assist Mr. Sandless in its compliance efforts suggests that Mr. Sandless may have specific policies or procedures in place to ensure compliance with Anti-Terrorism Laws, and franchisees will be expected to follow these policies and provide any necessary information or documentation to Mr. Sandless. Franchisees should carefully review Section 9.18 of the franchise agreement, as referenced in the disclosure, to fully understand their responsibilities and potential liabilities related to Anti-Terrorism Laws.