What representations and warranties does a Beverly Anns Cookie franchisee make regarding Sanctioned Persons and Countries under the Anti-Money Laundering/International Trade Law Compliance section of the loan agreement?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
l allow us to identify you, such as organizational documents. For some businesses and organizations, we may also need to ask for identifying information and documentation relating to certain individuals associated with the business or organization.
- 25. ANTI-MONEY LAUNDERING/INTERNATIONAL TRADE LAW COMPLIANCE. You represent and warrant to us, as of the date of this Loan Agreement, the date of each advance of proceeds under the Loan, the date of any renewal, extension or modification of this Loan Agreement, and at all times until the Loan has been terminated and all amounts thereunder have been indefeasibly paid in full, that (a) no Covered Entity (i) is a Sanctioned Person; (ii) has any of its assets in a Sanctioned Country or in the possession, custody or control of a Sanctioned Person;
Source: Item 22 — CONTRACTS (FDD page 57)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, as part of the Anti-Money Laundering/International Trade Law Compliance section of the loan agreement, the franchisee makes several representations and warranties. These representations are made on the date of the Loan Agreement, the date of each advance of proceeds, the date of any renewal, extension, or modification of the Loan Agreement, and at all times until the loan is terminated and fully paid.
Specifically, the franchisee warrants that they are not a Sanctioned Person and are not owned or controlled by one. They also confirm that the loan proceeds will not be used to fund activities in or with any Sanctioned Country, or to engage in transactions that would violate Sanctions Laws. Additionally, the franchisee states that they have implemented and will maintain policies and procedures to ensure compliance with Sanctions Laws.
These warranties and representations are crucial for Beverly Anns Cookie and its lenders to ensure they are not involved in illegal activities or violating international trade laws. For a prospective franchisee, this means they must be fully aware of and compliant with all applicable laws and regulations related to money laundering and international trade. Failure to comply could result in severe penalties, including legal repercussions and termination of the franchise agreement.