Does the Anago subfranchise agreement require the subfranchisor to certify and warrant that they are not a person or entity who is otherwise the target of U.S. economic sanctions?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
e Commission's Franchise Rule, as amended July 23, 2007, not less than fourteen (14) calendar days prior to the date on which this Agreement was executed or the date on which Subfranchisor paid any consideration to Franchisor.
Section 16.16 - Anti-Terrorist Activities and Representations
Subfranchisor certifies and warrants that neither it, nor any of its owners, principals, employees or associates (including all shareholders, members or partners (as applicable)), are (i) a person or entity designated by the U.S. Government on the list of the Specially Designated Nationals and Blocked Persons (the "SDN List"), as maintained by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC") at http://www.ustreas.gov/offices/enforcement/ofac/sdn, with which a U.S. person or entity cannot deal with or otherwise engage in business transactions; (ii) a person or entity who is otherwise the target of U.S. economic sanctions and trade embargoes enforced and administered by OFAC, such that a U.S. person or entity cannot deal or otherwise engage in business transactions with Subfranchisor or its shareholders, members or partners; (iii) either wholly or partly owned or partly controlled by any person or entity on the SDN List, including, without limitation by virtue of such person being a director or owning voting shares or interests in an entity on the SDN List; (iv) a person or entity acting, directly or indirectly, for or on behalf of any person or entity on the SDN List;
Source: Item 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the subfranchisor must certify and warrant that they, their owners, principals, employees, and associates are not the target of U.S. economic sanctions. Specifically, the subfranchisor must confirm they are not a person or entity designated on the U.S. Government's list of Specially Designated Nationals and Blocked Persons (SDN List). They also must not be a person or entity who is otherwise the target of U.S. economic sanctions and trade embargoes enforced and administered by the OFAC, such that a U.S. person or entity cannot deal or otherwise engage in business transactions with Subfranchisor or its shareholders, members or partners.
Furthermore, the subfranchisor must certify they are not wholly or partly owned or controlled by any person or entity on the SDN List, including by virtue of such person being a director or owning voting shares or interests in an entity on the SDN List. They also cannot be a person or entity acting, directly or indirectly, for or on behalf of any person or entity on the SDN List, or acting for or on behalf of a foreign government that is the target of the OFAC sanctions regulations, such that entering into the agreement would be prohibited under U.S. law.
This requirement ensures that Anago complies with U.S. anti-terrorism laws and regulations. A misrepresentation or violation of these laws by the subfranchisor can lead to immediate termination of the Subfranchise Agreement and any other agreements with Anago or its affiliates. This places a significant responsibility on the subfranchisor to conduct thorough due diligence on all parties involved in their business to ensure compliance.