Does Benihana prohibit franchisees from hiring anyone on the SDN List?
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.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees are prohibited from hiring or dealing with individuals or entities on the SDN (Specially Designated Nationals) List. Benihana requires franchisees to comply with anti-terrorism laws to the fullest extent possible. The franchisee is responsible for determining the necessary actions to comply with these laws.
This obligation extends to not hiring or conducting business with anyone on the SDN List, which is subject to change. Franchisees must understand and adhere to these regulations to avoid potential legal issues and maintain compliance with Benihana's standards.
Any misrepresentation or violation of anti-terrorism laws by the franchisee, its owners, principals, or employees can result in immediate termination of the franchise agreement without an opportunity to rectify the situation. The franchisee's indemnification obligations also apply to these anti-terrorism law requirements, highlighting the importance of strict adherence to these regulations.