What certification and representation does a Bft franchisee make regarding terrorist affiliations?
Bft Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee hereby certifies and represents that Franchisee, and any of its affiliates, any of its partners, members, shareholders or other equity owners, and their respective employees, officers, directors representatives or agents, are not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by any Executive Order or the United States Treasury Department as a terrorist, terrorist organization or "Designated Terrorist Organization," "Specially Designated National and Blocked Person," or other banned, prohibited, or blocked person, group, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control.
Franchisee agrees to comply with and assist Franchisor in Franchisor's compliance efforts, as applicable, with any and all laws, regulations, Executive Orders or otherwise relating to anti-terrorist activities or conduct of transactions involving certain foreign parties, including the U.S.
Patriot Act, Executive Order 13224, the U.S.
Foreign Corrupt Practices Act, the Bank Secrecy Act, the International Money Laundering Abatement
and Anti-terrorism Financing Act, the Export Administration Act, the Arms Export Control Act, the International Economic Emergency Powers Act, and related U.S. Treasury or other regulations.
Source: Item 23 — RECEIPTS (FDD pages 79–265)
What This Means (2025 FDD)
According to the 2025 Bft Franchise Disclosure Document, a franchisee must certify and represent that neither they, their affiliates, partners, members, shareholders, equity owners, nor their respective employees, officers, directors, representatives, or agents are acting directly or indirectly for or on behalf of any person, group, entity, or nation named by any Executive Order or the United States Treasury Department as a terrorist, terrorist organization, or "Designated Terrorist Organization," "Specially Designated National and Blocked Person," or other banned, prohibited, or blocked person, group, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control. This is a standard requirement in many franchise agreements to ensure compliance with U.S. anti-terrorism laws.
Furthermore, the Bft franchisee must agree to comply with and assist Bft in its compliance efforts with all laws, regulations, Executive Orders, or otherwise relating to anti-terrorist activities or conduct of transactions involving certain foreign parties. This includes adherence to the U.S. Patriot Act, Executive Order 13224, the U.S. Foreign Corrupt Practices Act, the Bank Secrecy Act, the International Money Laundering Abatement and Anti-terrorism Financing Act, the Export Administration Act, the Arms Export Control Act, the International Economic Emergency Powers Act, and related U.S. Treasury or other regulations.
This requirement places a responsibility on the Bft franchisee to conduct due diligence and ensure that their business operations and affiliations do not violate any anti-terrorism laws or regulations. Failure to comply with these regulations could result in severe legal and financial consequences for both the franchisee and Bft. Prospective franchisees should carefully review these requirements and ensure they have the resources and systems in place to meet these obligations.