How does Bhc define 'Anti-Terrorism Laws' in the context of the Master Franchise Agreement?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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, "Anti-Terrorism Laws" are specifically defined within the context of the Master Franchise Agreement. These laws encompass a range of legal instruments, including 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), and the USA PATRIOT Act.
Furthermore, the definition extends to all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and any other requirements issued by any United States governmental authority. This includes, but is not limited to, the United States Department of Treasury Office of Foreign Assets Control. These laws, regulations, and requirements address or relate in any way to terrorist acts and acts of war.
Bhc requires that the Master Franchisee and its Principal Equity Operators comply with these Anti-Terrorism Laws. Any misrepresentation or violation of these laws by the Master Franchisee, its Principal Equity Operators, or employees can result in immediate termination of the Master Franchise Agreement and any other agreements with Bhc or its affiliates. The Master Franchisee is solely responsible for understanding and adhering to these laws.