Does the Brueggers Bagels agreement require anyone to commit an act contrary to law?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
You must operate the Bakery in full compliance with all applicable municipal, county, state and federal laws, rules, regulations and ordinances.
You have sole responsibility for compliance despite any information or advice that we may provide.
You are prohibited from taking any actions that would jeopardize our ability to comply with the United States Foreign Corrupt Practices Act and the International Money Laundering Abatement and Anti-Terrorist Financing Act, otherwise known as the Patriot Act.
Franchisee represents and warrants to Franchisor that neither Franchisee, nor any of its respective affiliates is identified, either by name or an alias, pseudonym or nickname, on the lists of "Specially Designated Nationals" or "Blocked Persons" maintained by the U.S.
Treasury Department's Office of Foreign Assets Control (texts currently available at http://www.treasury.gov/resourcecenter/sanctions/Programs/ Pages/Programs.aspx).
Further, Franchisee represents and warrants that neither it nor any of its affiliates has violated, and agrees not to violate, any law prohibiting corrupt business practices, money laundering or the aid or support of persons or entities who conspire to commit acts of terror against any person, entity or government, including acts prohibited by the U.S.
Patriot Act (text currently available at http://www.epic.org/privacy/terrorism/hr3162.html), U.S.
Executive Order 13224 (text currently available at http://www.treasury.gov/resource-center/sanctions/programs/documents/terror.pdc), or any similar law.
Source: Item 22 — CONTRACTS (FDD page 61)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, franchisees must operate their bakeries in compliance with all applicable laws. The agreement explicitly prohibits franchisees from taking actions that could jeopardize Brueggers Bagels's ability to comply with the United States Foreign Corrupt Practices Act and the International Money Laundering Abatement and Anti-Terrorist Financing Act, also known as the Patriot Act.
Brueggers Bagels requires franchisees to warrant that neither they nor their affiliates are identified on the U.S. Treasury Department's Office of Foreign Assets Control's list of "Specially Designated Nationals" or "Blocked Persons." Franchisees must also warrant that they and their affiliates have not violated and will not violate any laws prohibiting corrupt business practices, money laundering, or support for terrorist activities, including those prohibited by the U.S. Patriot Act, U.S. Executive Order 13224, or similar laws.
This clause emphasizes Brueggers Bagels's commitment to legal and ethical conduct and protects the brand from potential legal repercussions due to franchisee actions. It is a standard practice in franchising to include such clauses to ensure compliance with laws and regulations and to safeguard the franchisor's reputation.