Are Benihana franchisees responsible for determining actions to comply with Anti-Terrorism Laws?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
- 21.8 Franchisee must comply with, and assist to the fullest extent possible BNC's efforts to comply with, the Anti-Terrorism Laws (as defined below). Franchisee will not hire or otherwise deal with any person listed on the SDN List, as it may be modified from time to time. Franchisee is solely responsible for determining actions Franchisee must take to comply with all Anti-Terrorism Laws. Franchisee specifically acknowledges and agrees that Franchisee's indemnification obligations under this Agreement apply to Franchisee's obligations under Section 21.7 and this Section 21.8. Any misrepresentation by Franchisee under this Section 21.8, or any violation of any Anti-Terrorism Laws by Franchisee, Franchisee's owners, principals or employees, will constitute grounds for immediate termination without opportunity to cure of this Agreement and any other agreement between Franchisee and BNC or BNC's affiliates.
- 21.9 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 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees are responsible for determining the actions they must take to comply with Anti-Terrorism Laws. Benihana franchisees must comply with all Anti-Terrorism Laws and assist Benihana in its compliance efforts. Franchisees cannot hire or deal with anyone on the SDN List, which may be updated.
These Anti-Terrorism Laws include Executive Order 13224, Terrorism Sanctions Regulations, Foreign Terrorist Organizations Sanctions Regulations, Cuban Assets Control Regulations, the USA PATRIOT ACT, and all other present and future federal, state, and local laws related to terrorist acts and acts of war. This also includes requirements from any Governmental Authority, such as the United States Department of Treasury Office of Foreign Assets Control.
Franchisees also acknowledge that their indemnification obligations apply to their responsibilities under these Anti-Terrorism Laws. Any misrepresentation or violation of these laws by the franchisee, their owners, principals, or employees can result in immediate termination of the Franchise Agreement without an opportunity to cure the violation. This highlights the critical importance of understanding and adhering to these laws to avoid severe penalties and maintain the franchise agreement.