Does the Beggars Pizza franchisee represent and warrant that 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 Beggars Pizza's 2025 Franchise Disclosure Document, the franchisee must represent and warrant that they are not a Specially Designated National or Blocked Person. Specifically, the franchisee must confirm that neither they nor anyone holding an ownership interest, controlled by them, or under common control with them is on the Specially Designated Nationals and Blocked Persons list.
Furthermore, the franchisee must warrant that they do not engage in any terrorist activity, are not affiliated with or support anyone involved in terrorist activities, and are not acquiring franchise rights to generate funds for terrorist activities. This is a standard clause in franchise agreements to ensure compliance with U.S. laws and regulations regarding terrorism and international trade. The current listing of such designations is published at www.ustreas.gov/offices/enforcement/ofac.
The franchisee is also obligated to immediately inform Beggars Pizza in writing if any event occurs that makes these representations and warranties incorrect. This places an ongoing duty on the franchisee to monitor their status and disclose any changes that could affect their compliance with these requirements. Failure to comply with these representations and warranties could result in a breach of the franchise agreement and potential legal consequences.