What is the Bhc Master Franchisee's responsibility for ascertaining compliance actions related to Anti-Terrorism Laws?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Master Franchisee is solely responsible for determining the necessary actions to comply with all Anti-Terrorism Laws. This responsibility extends to ensuring that neither the Master Franchisee, its Principal Equity Operators, employees, nor anyone associated with them is listed in the Annex to Executive Order 13224. The Master Franchisee must also certify they have no knowledge that would lead to them being listed in the Annex. Bhc requires the Master Franchisee to comply with and assist Bhc in its efforts to adhere to Anti-Terrorism Laws.
In connection with compliance, the Master Franchisee must certify, represent, and 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 these laws. The agreement defines "Anti-Terrorism Laws" to include Executive Order 13224, 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 related to terrorist acts and acts of war.
Any misrepresentation or violation of Anti-Terrorism Laws by the Master Franchisee, its Principal Equity Operators, or employees constitutes grounds for immediate termination of the Master Franchise Agreement and any other agreements with Bhc or its affiliates. The Master Franchisee's indemnification responsibilities also pertain to their obligations under this section, meaning they are responsible for covering any losses or damages Bhc incurs due to their non-compliance. This places a significant legal and financial burden on the Master Franchisee to ensure full compliance with all applicable Anti-Terrorism Laws.