Does Benihana require franchisees to certify that they are not acting, directly or indirectly, for or on behalf of a foreign government that is the target of OFAC sanctions regulations?
Benihana Franchise · 2024 FDDAnswer from 2024 FDD Document
e, profits, or success of the business venture contemplated by this Agreement.
- 21.4 Franchisee acknowledges that Franchisee received BNC's Franchise Disclosure Document at least ten (10) calendar days before the date on which Franchisee signed this Agreement.
- 21.5 Franchisee acknowledges that Franchisee has read and understood this Agreement, the attachments hereto and all agreements relating thereto, if any, and that BNC has accorded Franchisee ample time and opportunity to consult with advisors of Franchisee's own choosing about the potential benefits and risks of entering into this Agreement.
- 21.6 Except as set forth in any disclosure document, Franchisee acknowledges that Franchisee is relying solely on BNC and not on any affiliated entity or parent company related to BNC with regard to BNC's financial and other obligations under this Agreement.
- 21.7 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) is: (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"), as maintained by the U.S. Treasury Department's Office of Foreign Assets Control ("OFAC") at http://www.ustreas.gov/offices/enforcement/ofac/sdn, with which a U.S. person or entity cannot deal with or otherwise engage in business transactions; (ii) a person or entity otherwise the target of U.S.
Source: Item 23 — Receipts (FDD pages 74–576)
What This Means (2024 FDD)
According to Benihana's 2024 Franchise Disclosure Document, franchisees must certify that they, their owners, principals, employees, or associates are not acting directly or indirectly for or on behalf of a foreign government that is the target of OFAC sanctions regulations. This certification is part of a broader set of acknowledgments related to anti-terrorist activities and representations.
Specifically, Benihana franchisees must warrant that they are not on the Specially Designated Nationals and Blocked Persons (SDN) List maintained by the U.S. Treasury Department's Office of Foreign Assets Control (OFAC). They also cannot be the target of U.S. economic sanctions or trade embargoes administered by OFAC. Furthermore, franchisees cannot engage in business transactions with entities on the SDN List or those acting on behalf of such entities.
This requirement ensures that Benihana complies with U.S. laws and regulations related to anti-terrorism and economic sanctions. Any misrepresentation or violation of these laws by the franchisee can result in immediate termination of the franchise agreement without an opportunity to cure the violation. This places a significant responsibility on the franchisee to conduct thorough due diligence and maintain compliance with all applicable Anti-Terrorism Laws.