What certifications, representations, and warranties are Mrcool franchisees and owners required to make regarding Anti-Terrorism Laws?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
- (6) Franchisee and Owners agree to comply with, and/or to assist Franchisor to the fullest extent possible in Franchisor's efforts to comply with Anti-Terrorism Laws (as defined below).
In connection with such compliance, Franchisee and each Owner certify, represent, and warrant that Franchisee's or any Owner's property or interests is not subject to being "blocked" under any of the Anti-Terrorism Laws, and Franchisee and each Owner are not otherwise in violation of any of the Anti-Terrorism Laws.
Franchisee further certifies that Franchisee and each Owner are not listed on the Annex to Executive Order 13244 (the Annex is available at http://www.treasury.gov) and will not become so listed, hire any person so listed, or have dealings with any person so listed.
Franchisee agrees to immediately notify Franchisor if Franchisee or any Owner become so listed. "Anti-Terrorism Laws" refers to and means 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 any other requirements of any governmental authority addressing, or in any way relating to, terrorist acts and acts of war.
If Franchisee, an Owner, or Franchisee's employees violate any of the Anti-Terrorism Laws and/or become listed on the Annex
Source: Item 23 — RECEIPTS (FDD pages 55–263)
What This Means (2025 FDD)
According to Mrcool's 2025 Franchise Disclosure Document, franchisees and their owners must comply with Anti-Terrorism Laws. As part of this compliance, franchisees and each owner must certify, represent, and warrant that their property or interests are not subject to being "blocked" under any Anti-Terrorism Laws. They must also certify that they are not in violation of any Anti-Terrorism Laws.
Specifically, Mrcool franchisees and owners must certify that they are not listed on the Annex to Executive Order 13244, which is available on the Treasury Department's website. Furthermore, they agree not to become listed, hire anyone listed, or have dealings with anyone listed on the Annex. Franchisees are obligated to immediately inform Mrcool if they or any owner becomes listed on the Annex.
"Anti-Terrorism Laws" are defined broadly to include Executive Order 13224, the USA PATRIOT Act, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and any other requirements related to terrorist acts and acts of war. Violation of these laws or being listed on the Annex to Executive Order 13244 can result in immediate termination of the Franchise Agreement by Mrcool without prior notice.