What are the potential consequences for Bhc Franchisee if there is a misrepresentation under section 16.12 or a violation of Anti-Terrorism Laws?
Bhc Franchise · 2025 FDDAnswer from 2025 FDD Document
errorism 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. 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.
Source: Item 23 — Receipts (FDD pages 52–230)
What This Means (2025 FDD)
According to Bhc's 2025 Franchise Disclosure Document, a franchisee faces serious repercussions for misrepresentation under section 16.12 or violating Anti-Terrorism Laws. Specifically, any misrepresentation or violation by the franchisee, their Principal Equity Operators, or employees provides grounds for immediate termination of the Franchise Agreement. This termination extends to any other agreements the franchisee has with Bhc or its affiliates.
This clause underscores the critical importance Bhc places on compliance with U.S. Anti-Terrorism Laws. These laws are defined broadly 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. Franchisees must ensure that they, their employees, and anyone associated with them are not in violation of these laws.
The franchisee also agrees to indemnify Bhc for any losses or damages they incur as a result of the franchisee's non-compliance with Anti-Terrorism Laws. This means the franchisee is financially responsible for any legal or financial repercussions Bhc faces due to the franchisee's actions or misrepresentations. Prospective franchisees should carefully review Section 16.12 and understand their obligations to avoid potential termination of their franchise agreement and other related agreements.