Does the Anago subfranchisor agreement require compliance with requirements of the United States Department of Treasury Office of Foreign Assets Control?
Anago Franchise · 2025 FDDAnswer from 2025 FDD Document
Subfranchisor shall comply with, and assist Franchisor to the fullest extent possible in Franchisor's efforts to comply with, the Anti-Terrorism Laws (as defined below). Subfranchisor shall not hire nor have any dealings with any person listed on the SDN List, as it may be modified from time to time. Subfranchisor is solely responsible for ascertaining what actions must be taken by Subfranchisor to comply with all Anti-Terrorism Laws. Subfranchisor specifically acknowledges and agrees that Subfranchisor's indemnification obligations under this Agreement pertain to Subfranchisor's obligations under this Section. Any misrepresentation by Subfranchisor under this Section, or any violation of any Anti-Terrorism Laws by Subfranchisor, Subfranchisor's owners, principals or employees, shall constitute grounds for immediate termination of this Agreement and any other agreement Subfranchisor has entered into with Franchisor or its Affiliates. 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 23 — RECEIPTS (FDD pages 62–298)
What This Means (2025 FDD)
According to Anago's 2025 Franchise Disclosure Document, the subfranchisor agreement mandates compliance with anti-terrorism laws, which include requirements from the United States Department of Treasury Office of Foreign Assets Control. Specifically, the subfranchisor must comply with Anti-Terrorism Laws and assist Anago in its compliance efforts. The subfranchisor is prohibited from hiring or dealing with individuals or entities listed on the SDN (Specially Designated Nationals) List, which is updated periodically.
The subfranchisor bears the sole responsibility for understanding and adhering to all Anti-Terrorism Laws. The agreement emphasizes that the subfranchisor's indemnification obligations extend to their responsibilities under this section. Any misrepresentation or violation of Anti-Terrorism Laws by the subfranchisor, its owners, principals, or employees, constitutes grounds for immediate termination of the agreement and any other agreements with Anago or its affiliates.
The term "Anti-Terrorism Laws" encompasses a range of regulations, including Executive Order 13224, Terrorism Sanctions Regulations, Foreign Terrorist Organizations Sanctions Regulations, Cuban Assets Control Regulations, the USA PATRIOT ACT, and all other federal, state, and local laws and requirements related to terrorist acts and acts of war, including those from the United States Department of Treasury Office of Foreign Assets Control. This comprehensive definition underscores the importance Anago places on compliance with these laws and the potential consequences of non-compliance for its subfranchisors.