Does Benihana require franchisees to certify that none of their principals 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.
- 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 must comply with anti-terrorism laws and ensure they do not associate with individuals or entities on the SDN (Specially Designated Nationals) List. Benihana franchisees must assist Benihana in complying with Anti-Terrorism Laws. Franchisees are prohibited from hiring or dealing with any person listed on the SDN List, which is subject to modifications.
The franchisee bears the sole responsibility for determining the necessary actions to comply with all Anti-Terrorism Laws. The franchisee's indemnification obligations extend to their responsibilities under this section, covering both Section 21.7 and Section 21.8 of the franchise agreement.
Any misrepresentation by the franchisee regarding compliance with anti-terrorism laws, or any violation of these laws by the franchisee, their owners, principals, or employees, constitutes grounds for immediate termination of the franchise agreement without an opportunity to cure the violation. This strict adherence to anti-terrorism laws is a critical component of the Benihana franchise agreement.