What are the consequences if an Mrcool franchisee, owner, or employee violates any of the Anti-Terrorism Laws?

According to Mrcool's 2025 Franchise Disclosure Document, a significant consequence arises if a franchisee, an owner, or the franchisee's employees violate any Anti-Terrorism Laws or become listed on the Annex to Executive Order 13244. In such cases, Mrcool has the right to terminate the Franchise Agreement immediately without providing prior notice to the franchisee.

This provision underscores the critical importance Mrcool places on compliance with Anti-Terrorism Laws. These laws are defined as Executive Order 13224, the USA PATRIOT Act, and all other present and future federal, state, and local laws related to terrorist acts and acts of war. The Annex to Executive Order 13244 is a list maintained by the U.S. Treasury Department of individuals and entities associated with terrorism.

For a prospective Mrcool franchisee, this means that they, their owners, and their employees must adhere strictly to all Anti-Terrorism Laws. Failure to do so can result in the immediate termination of their franchise agreement, leading to a loss of their investment and business. Franchisees must ensure that they and their personnel are not listed on the Annex to Executive Order 13244 and do not engage in any activities that could be construed as violating these laws. This requirement highlights the need for thorough background checks and ongoing compliance monitoring within the franchise operation.