How are 'Anti-Terrorism Laws' defined in the Bhc franchise agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
Equity Operators, employees, or anyone associated with Master Franchisee being listed in the Annex to Executive Order 13224. Master Franchisee and each of the Principal Equity Operators will comply with and assist Franchisor as much as possible in Franchisor's efforts to comply with the Anti- Terrorism Laws (as defined below). In connection with such compliance, Master Franchisee certifies, represents, and warrants that none of Master Franchisee's respective property or interests is subject to being "blocked" under any of the Anti-Terrorism Laws and that Master Franchisee and the Principal Equity Operators are not otherwise in violation of any of the Anti-Terrorism Laws. Master Franchisee is solely responsible for ascertaining what actions must be taken by Master Franchisee to comply with all such Anti-Terrorism Laws. Master Franchisee specifically acknowledges and agrees that its indemnification responsibilities as provided in this Agreement also pertain to its obligations under this section 16.12. Any misrepresentation by Master Franchisee under this section 16.12 or any violation of the Anti-Terrorism Laws by Master Franchisee, any of the Principal Equity Operators, or employees will constitute grounds for immediate termination of this Agreement and any other agreement Master Franchisee executed with Franchisor or one of Franchisor's Affiliates. "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 United States 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 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, the term "Anti-Terrorism Laws" encompasses a range of regulations and legal mandates. These include 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), and the Cuban Assets Control Regulations (Title 31, Part 515 of the U.S. Code of Federal Regulations). Additionally, the definition includes the USA PATRIOT Act, along with all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and any other requirements from any United States governmental authority. This includes, but is not limited to, the United States Department of Treasury Office of Foreign Assets Control, all of which address or relate in any way to terrorist acts and acts of war.
Bhc franchisees must comply with these Anti-Terrorism Laws and assist Bhc in its compliance efforts. Franchisees are responsible for understanding and adhering to these laws. They must certify that neither they, their Principal Equity Operators, nor their employees are listed in the Annex to Executive Order 13224, and they must not engage with anyone listed in the Annex. Franchisees also warrant that their property and interests are not subject to being "blocked" under any Anti-Terrorism Laws and that they are not in violation of any of these laws.
Any misrepresentation or violation of Anti-Terrorism Laws by the franchisee, their Principal Equity Operators, or employees can lead to immediate termination of the franchise agreement and any other agreements with Bhc or its affiliates. This highlights the critical importance of franchisees understanding and adhering to these laws to maintain their franchise agreement with Bhc. Furthermore, franchisees must notify Bhc in writing immediately if any event occurs that renders their representations and warranties regarding these laws incorrect.
This definition places a significant compliance burden on Bhc franchisees, requiring them to stay informed about and adhere to a complex and evolving set of laws and regulations. Prospective franchisees should carefully review these requirements and ensure they have the resources and expertise to comply with all applicable Anti-Terrorism Laws.