Does Benihana require franchisees to certify that none of their employees are 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 must comply with anti-terrorism laws and ensure they do not hire or deal with individuals on the SDN List (Specially Designated Nationals List). Benihana franchisees are responsible for understanding and adhering to all anti-terrorism laws. Franchisees must fully assist Benihana in complying with these laws.
This requirement means that a Benihana franchisee must actively check potential and current employees against the SDN List to avoid violating anti-terrorism laws. The franchisee bears the responsibility for determining the necessary actions to comply with these laws.
Any misrepresentation regarding compliance with these regulations or any violation of anti-terrorism laws by the franchisee, its owners, principals, or employees can lead to immediate termination of the franchise agreement without an opportunity to correct the issue. The franchisee's indemnification obligations also apply to these anti-terrorism compliance requirements, highlighting the importance of adhering to these regulations.