What activities are prohibited for the Bhc Master Franchisee and Principal Equity Operators regarding money laundering?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Neither Master Franchisee nor any Principal Equity Operator conducts any activity, or has failed to conduct any activity, if such action or inaction constitutes a money laundering crime, including any money laundering crime prohibited under any applicable Anti-Terror Legislation.
- (c) Neither Master Franchisee nor any Principal Equity Operator nor any employee of either is named as a "Specially Designated National" or "Blocked Person" as designated by the U.S. Department of the Treasury's Office of Foreign Assets Control and published at www.treas.gov/offices/enforcement/ofac/sdn/. Master Franchisee acknowledges that Master Franchisee is not directly or indirectly owned or controlled by the government of any country that is subject to an embargo imposed by the United States of America, nor does Master Franchisee or any Principal Equity Operator act directly or indirectly on behalf of the government of any country that is subject to an embargo imposed by the United States of America. Master Franchisee agrees that Master Franchisee will notify Franchisor in writing immediately of the occurrence of any event that renders the foregoing representations and warranties of this section 16.12 incorrect.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, Master Franchisees and Principal Equity Operators must not engage in any activities that constitute a money laundering crime, including those prohibited by anti-terrorism legislation. This means that Bhc holds its franchisees to a high standard of legal and ethical conduct, specifically regarding financial transactions.
Furthermore, neither the Master Franchisee, any Principal Equity Operator, nor any of their employees can be listed as a "Specially Designated National" or "Blocked Person" by the U.S. Department of the Treasury's Office of Foreign Assets Control. The Master Franchisee must also confirm that they are not owned or controlled by the government of any country under a U.S. embargo, nor are they acting on behalf of such a government.
The Master Franchisee has an ongoing responsibility to inform Bhc immediately if any event occurs that would make these representations incorrect. This places a significant compliance burden on the franchisee, requiring them to stay informed about and adhere to all relevant laws and regulations, and to proactively disclose any potential issues to Bhc.