Is the Beggars Pizza franchisee allowed to engage in any terrorist activity?
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 Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee is strictly prohibited from engaging in any form of terrorist activity. The franchise agreement includes a representation and warranty where the franchisee confirms that they, nor anyone with an ownership interest, are not a Specially Designated National or Blocked Person as defined by the U.S. Department of Treasury's Office of Foreign Assets Control.
Specifically, the franchisee must warrant that they do not engage in terrorist activities, are not affiliated with or supporting any individual or entity involved in terrorism, and are not acquiring the franchise rights to generate funds for terrorist activities. This is a crucial aspect of the agreement, ensuring that Beggars Pizza is not associated with or supporting any illicit activities.
The agreement also stipulates that the franchisee must immediately inform Beggars Pizza if any event occurs that would make these representations and warranties incorrect. This places an ongoing obligation on the franchisee to remain compliant and transparent about their activities and affiliations. The listing of specially designated nationals is available on the U.S. Department of Treasury's website, providing a resource for franchisees to ensure compliance.