Regarding compliance with laws for a Brueggers Bagels franchise, who has the sole responsibility for compliance with all applicable laws, rules, regulations, and ordinances?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.20. Compliance with Laws.
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' 2025 Franchise Disclosure Document, the franchisee has the sole responsibility for operating their bakery in full compliance with all applicable municipal, county, state, and federal laws, rules, regulations, and ordinances. This responsibility falls solely on the franchisee, regardless of any information or advice that Brueggers Bagels may provide. This means that while Brueggers Bagels may offer guidance or support, the ultimate accountability for legal compliance rests with the franchisee.
This requirement extends to ensuring compliance with specific legislation such as the United States Foreign Corrupt Practices Act and the International Money Laundering Abatement and Anti-Terrorist Financing Act, also known as the Patriot Act. The franchisee must not take any actions that would jeopardize Brueggers Bagels' ability to comply with these laws. Furthermore, the franchisee must confirm that neither they nor their affiliates are listed as "Specially Designated Nationals" or "Blocked Persons" by the U.S. Treasury Department's Office of Foreign Assets Control.
In addition, the franchisee warrants 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 outlined in the U.S. Patriot Act and Executive Order 13224. This places a significant burden on the franchisee to stay informed about and adhere to a wide range of legal requirements, making it essential to seek legal counsel and implement robust compliance procedures.