What are the consequences if the Bhc Master Franchisee makes a misrepresentation under section 16.12 or violates Anti-Terrorism Laws?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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, any misrepresentation by the Master Franchisee under section 16.12, or any violation of Anti-Terrorism Laws by the Master Franchisee, any of the Principal Equity Operators, or employees will result in immediate termination of the Master Franchise Agreement. This consequence extends to any other agreement the Master Franchisee has executed with Bhc or one of its affiliates.
Section 16.12 of the franchise agreement requires the Master Franchisee to comply with U.S. Anti-Terrorism and Other U.S. Federal Laws. This includes certifying that neither the Master Franchisee, any Principal Equity Operators, employees, nor anyone associated with the Master Franchisee is listed in the Annex to Executive Order 13224. The Master Franchisee must also promise not to hire or deal with anyone listed in the Annex. They must also certify they have no knowledge or information that would result in them being listed in the Annex.
The Master Franchisee must comply with and assist Bhc in complying with Anti-Terrorism Laws. They must also represent and warrant that none of their property or interests is subject to being "blocked" under any Anti-Terrorism Laws and that they are not in violation of any Anti-Terrorism Laws. The Master Franchisee is solely responsible for understanding what actions they must take to comply with all Anti-Terrorism Laws. The Master Franchisee's indemnification responsibilities also pertain to their obligations under section 16.12.