factual

Does the Benihana franchisee certify and warrant that none of their associates are on the SDN List?

Benihana Franchise · 2024 FDD

Answer from 2024 FDD Document

, or otherwise representing BNC has made any statement or promise to the effect that any affiliated entities or parent companies guarantee BNC's performance or financially back BNC.

  • 21.5 Anti-Terrorist Activities and Representations. Franchisee certifies and warrants that neither Franchisee, nor any of Franchisee's owners, principals, employees or associates (including all shareholders, members or partners (as applicable)), are: (i) a person or entity designated by the U.S. Government on the list of the Specially Designated Nationals and Blocked Persons (the "SDN List"), maintained at http://www.ustreas.gov/offices/enforcement/ofac/sdn by the U.S. Treasury Department Office of Foreign Assets Control ("OFAC"), with which a U.S. person or entity cannot deal or otherwise engage in business transactions; (ii) a person or entity who is otherwise the target of U.S. economic sanctions and trade embargoes enforced and administered by OFAC, such that a U.S. person or entity cannot deal or otherwise engage in business transactions with Franchisee or Franchisee's shareholders, members or partners; (iii) either wholly or partly owned or partly controlled by any person or entity on the SDN List, including, without limitation by virtue of such person being a director or owning voting shares or interests in an entity on the SDN List; (iv) a person or entity acting, directly or indirectly, for or on behalf of any person or entity

on the SDN List; or (v) a person or entity acting, directly or indirectly, for or on behalf of a foreign government that is the target of the OFAC sanctions regulations such that the entry into this Agreement would be prohibited under U.S. law.

21.6 Franchisee shall comply with and assist BNC to the fullest extent possible in BNC's efforts to comply with the Anti-Terrorism Laws (as defined below). Franchisee shall not hire nor have any dealings with any person listed on the SDN List, as it may be modified from time to time. Franchisee is solely responsible specifically acknowledges and agrees that Franchisee's indemnification obligations under this Agreement pertain to Franchisee's obligations under this Section 21.6. Any misrepresentation by Franchisee under this Section 21.6, or any violation of any Anti-Terrorism Laws by Franchisee, Franchisee's owners, principals or employees, shall constitute grounds for immediate termination of this Agreement and any other agreement Franchisee has entered into with BNC 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 22 — CONTRACTS (FDD pages 73–74)

What This Means (2024 FDD)

According to Benihana's 2024 Franchise Disclosure Document, franchisees must certify and warrant that neither they, nor any of their owners, principals, employees, or associates are on the Specially Designated Nationals and Blocked Persons list (SDN List). This list is maintained by the U.S. Treasury Department Office of Foreign Assets Control (OFAC). Franchisees must also ensure they are not the target of U.S. economic sanctions and trade embargoes administered by OFAC.

This requirement extends to ensuring that no person or entity on the SDN List partly owns or controls the franchisee's business. Additionally, franchisees must warrant that they are not acting on behalf of anyone on the SDN List. This certification is part of Benihana's broader effort to comply with anti-terrorism laws and regulations.

Benihana franchisees are obligated to comply with and assist Benihana in complying with anti-terrorism laws. They are prohibited from hiring or dealing with anyone on the SDN List. Any misrepresentation or violation of anti-terrorism laws by the franchisee can lead to immediate termination of the franchise agreement. Anti-Terrorism Laws include Executive Order 13224, Terrorism Sanctions Regulations, Foreign Terrorist Organizations Sanctions Regulations, Cuban Assets Control Regulations, the USA PATRIOT ACT, and other related laws and regulations.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.