Are Azal Coffee franchisees required to represent and warrant that they are not directly or indirectly owned or controlled by the government of any country subject to a United States embargo?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
19.5 Terrorist and Money Laundering Activities.
You and your owners, officers, directors, members, partners, and agents represent and warrant to us that: (a) you and they are not identified by name or alias, pseudonym or nickname, on the lists of "Specially Designated Nationals" or "Blocked Persons" maintained by the U.S. Treasury Department's Office of Foreign Assets Control; (b) you and they are not directly or indirectly owned or controlled by the government of any country that is subject to a United States embargo; (c) you and they will not act directly or indirectly on behalf of the government of any country that is subject to a United States embargo; and (d) you and they are in full compliance with all laws proscribing money laundering and corrupt practices. Further, you and your owners, officers, directors, members, partners, and agents represent and warrant to us that you and they have not violated and agree not to violate any law prohibiting corrupt business practices, money laundering or the aid or support of persons who conspire to commit acts of terror against any person or government,
including acts prohibited by the USA Patriot Act, U.S. Executive Order 13244, or any similar law. The foregoing constitutes continuing representations and warranties, and you and your owners, officers, directors, members, partners, and agents must immediately notify us in writing of the occurrence of any event or the development of any circumstance that might render any of the foregoing representations and warranties false, inaccurate, or misleading.
Source: Item 22 — CONTRACTS (FDD page 51)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, franchisees, along with their owners, officers, directors, members, partners, and agents, must represent and warrant that they are not directly or indirectly owned or controlled by the government of any country subject to a United States embargo. This requirement is part of a broader clause addressing terrorist and money laundering activities.
Specifically, franchisees must also warrant that they are not identified on the U.S. Treasury Department's Office of Foreign Assets Control lists of "Specially Designated Nationals" or "Blocked Persons." They must also confirm that they will not act directly or indirectly on behalf of any government subject to a U.S. embargo and that they comply with all laws proscribing money laundering and corrupt practices.
These representations and warranties are ongoing, meaning franchisees must immediately notify Azal Coffee in writing if any event or circumstance occurs that could render these statements false, inaccurate, or misleading. This ensures that Azal Coffee maintains compliance with U.S. laws and regulations and avoids any association with prohibited entities or activities. This is a fairly standard practice in franchising, as franchisors need to protect their brand and ensure compliance with various legal requirements.