Is a Southern Steer franchisee allowed to enter into prohibited transactions related to anti-terrorist activities?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisee will comply and/or assist the Franchisor in its compliance efforts, as applicable, with any and all laws, regulations, Executive Orders or otherwise relating to anti-terrorist activities including, without limitation, the U.S.
Patriot Act, Executive Order 13224, and related U.S.
Treasury and/or other regulations.
In connection with such compliance efforts, the Franchisee will not enter into any prohibited transactions and will properly perform any currency reporting and other activities relating to the Southern Steer Business as may be required by the Franchisor or by law.
The Franchisee confirms that it is not listed in the Annex to Executive Order 13224 (http://www.treasury.gov/offices/enforcement/ofac/sanctions/terrorism.html) and agrees not to hire any person so listed or have any dealing with a person so listed.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, franchisees are explicitly prohibited from entering into transactions that violate anti-terrorist laws and regulations. Southern Steer requires its franchisees to comply with all laws, regulations, and executive orders related to anti-terrorist activities, including the U.S. Patriot Act and Executive Order 13224.
Southern Steer franchisees must not engage in any prohibited transactions related to these laws. They are also responsible for properly performing any currency reporting and other activities as required by law or by Southern Steer. This ensures that the franchisee's business operations align with national security interests and legal requirements.
Furthermore, the FDD confirms that a Southern Steer franchisee cannot be listed in the Annex to Executive Order 13224, which identifies individuals and entities associated with terrorism. The franchisee also agrees not to hire anyone listed in the Annex or conduct business with them. This provision is a critical component of Southern Steer's compliance efforts, designed to prevent any direct or indirect support of terrorist activities through its franchise network.