Are Benihana franchisees allowed to deal with persons or entities on the SDN List?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
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 are explicitly prohibited from engaging in any dealings with individuals or entities listed on the Specially Designated Nationals (SDN) List. This requirement is part of Benihana's broader compliance efforts with anti-terrorism laws and regulations.
Benihana franchisees must not hire or conduct business with anyone on the SDN List, which is subject to updates. Franchisees are also obligated to assist Benihana in complying with anti-terrorism laws to the fullest extent possible. These laws include Executive Order 13224, the Terrorism Sanctions Regulations, the Foreign Terrorist Organizations Sanctions Regulations, the Cuban Assets Control Regulations, the USA PATRIOT ACT, and any other relevant federal, state, and local laws and regulations.
Any misrepresentation or violation of these anti-terrorism laws by the franchisee, their owners, principals, or employees constitutes grounds for immediate termination of the Franchise Agreement. Franchisees are solely responsible for adhering to these obligations and indemnify Benihana for any failures in compliance. This strict adherence to anti-terrorism laws and the prohibition of dealings with entities on the SDN List is a critical aspect of maintaining the integrity and legal compliance of the Benihana franchise system.