Does the Beggars Pizza franchise agreement require franchisees to warrant they are not a Specially Designated National or Blocked Person?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee represents and warrants to Franchisor that as of the date of the Agreement, neither Franchisee nor any person holding any ownership interest in Franchisee, controlled by Franchisee, or under common control with Franchisee is a Specially Designated National or Blocked Person, and that Franchisee (a) does not, and hereafter will not, engage in any terrorist activity, (b) is not affiliated with and does not support any individual or entity engaged in, contemplating, or supporting terrorist activity, and (c) is not acquiring the rights granted under the Agreement with the intent to generate funds to channel to any individual or entity engaged in, contemplating, or supporting terrorist activity, or to otherwise support or further any terrorist activity.
Franchisee must immediately provide written notice to Franchisor of the occurrence of any event which renders the representations and warranties in this Section 26.4 incorrect.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the franchise agreement requires franchisees to represent and warrant that they, nor any person holding ownership interest, are not a Specially Designated National or Blocked Person as of the agreement date. This also extends to anyone controlled by or under common control with the franchisee.
Specifically, the franchisee must warrant that they do not engage in terrorist activity, are not affiliated with or support anyone involved in terrorist activity, and are not acquiring rights under the agreement to generate funds for terrorist activities. Beggars Pizza includes these stipulations to ensure compliance with U.S. regulations and to protect its brand from association with illegal or harmful activities.
The franchisee is obligated to immediately inform Beggars Pizza in writing if any event occurs that makes these representations and warranties incorrect. Beggars Pizza provides a website address (www.ustreas.gov/offices/enforcement/ofac) where a listing of such designations and the text of the relevant order are published.