What is Bhc Franchisee's responsibility in ascertaining actions to comply with Anti-Terrorism Laws?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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. 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 franchisee is solely responsible for determining the necessary actions to comply with all Anti-Terrorism Laws. Bhc franchisees must certify that they, their Principal Equity Operators, and employees are not listed in the Annex to Executive Order 13224, which is available at a provided website. Franchisees also agree 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 or their associates being listed in the Annex.
Bhc franchisees must comply with and assist Bhc in its efforts to adhere to Anti-Terrorism Laws. Franchisees must also warrant that their property and interests are not subject to being "blocked" under these laws and that they are not in violation of any Anti-Terrorism Laws. The agreement specifies that the franchisee's indemnification responsibilities also apply to their obligations under this section.
Any misrepresentation or violation of Anti-Terrorism Laws by the Bhc 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. The document defines "Anti-Terrorism Laws" to include various U.S. laws, regulations, and executive orders related to terrorist acts and acts of war, including Executive Order 13224, the Terrorism Sanctions Regulations, the Foreign Terrorist Organizations Sanctions Regulations, the Cuban Assets Control Regulations, the USA PATRIOT Act, and other federal, state, and local requirements.