Is Bhc Franchisee required to comply with Anti-Terrorism Laws?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
16.12 Compliance with U.S. Anti-Terrorism and Other U.S. Federal Laws.
- (a) Franchisee certifies that neither it nor any Principal Equity Operators or employees of Franchisee, or anyone else who is associated with Franchisee is not listed in the Annex to Executive Order 13224 (available at http://treasury.gov/offices/enforcement/ofac/sanctions/terrorism.html).
Franchisee covenants not to hire or have any dealings with a person listed in the Annex.
Franchisee certifies that it has no knowledge or information that, if generally known, would result in Franchisee, the Principal Equity Operators, employees, or anyone associated with Franchisee being listed in the Annex to Executive Order 13224.
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, Franchisee certifies, represents, and warrants that none of Franchisee's respective property or interests is subject to being "blocked" under any of the Anti-Terrorism Laws and that Franchisee and the Principal Equity Operators are not otherwise in violation of any of the Anti-Terrorism Laws.
Franchisee is solely responsible for ascertaining what actions must be taken by Franchisee to comply with all such Anti-Terrorism Laws.
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 Franchisee under this section 16.12 or any violation of the Anti-Terrorism Laws by Franchisee, any of the Principal Equity Operators, or employees will constitute grounds for immediate termination of this Agreement and any other agreement 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.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, franchisees must comply with U.S. Anti-Terrorism Laws. Franchisees must certify that neither they, any Principal Equity Operators, employees, nor anyone associated with the franchisee is listed in the Annex to Executive Order 13224. Franchisees also agree not to hire or have any dealings with individuals listed in the Annex.
Bhc franchisees must also certify they have no knowledge that would result in the franchisee, Principal Equity Operators, employees, or anyone associated with the franchisee being listed in the Annex to Executive Order 13224. Franchisees and Principal Equity Operators must comply with and assist Bhc in its efforts to adhere to Anti-Terrorism Laws. Franchisees must also ensure that none of their property or interests are subject to being "blocked" under any Anti-Terrorism Laws and that they and their Principal Equity Operators are not in violation of any Anti-Terrorism Laws.
The franchisee is solely responsible for understanding and taking the necessary actions to comply with all Anti-Terrorism Laws. Franchisees acknowledge that their indemnification responsibilities also pertain to their obligations under this section. Any misrepresentation or violation of Anti-Terrorism Laws by the franchisee, Principal Equity Operators, or employees can lead to immediate termination of the Franchise Agreement and any other agreements with Bhc or its affiliates.
"Anti-Terrorism Laws" include Executive Order 13224 issued by the President of the United States, the Terrorism Sanctions Regulations, the Foreign Terrorist Organizations Sanctions Regulations, the Cuban Assets Control 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 addressing or relating to terrorist acts and acts of war.