Under the Buona franchise agreement, what representation and warranty does the franchisee make to enable the franchisor to comply with U.S. Executive Order 13224?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
To enable Franchisor to comply with U.S.
Executive Order 13224, Franchisee hereby represents and warrants to Franchisor that neither Franchisee, nor any of its equity owners, directors, officers, employees, representatives, and agents (collectively, the "Included People"): (a) is, or is owned or controlled by, a suspected terrorist or foreign terrorist, as those terms are used,
contemplated, and/or implied in Executive Order 13224, and (b) to the best of Franchisee's knowledge, has any of the Included People been designated a suspected terrorist or foreign terrorist as those terms are used, contemplated, and/or implied in Executive Order 13224.
Source: Item 22 — CONTRACTS (FDD page 78)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, to enable Buona to comply with U.S. Executive Order 13224, the franchisee makes specific representations and warranties. The franchisee confirms that neither they nor any of their equity owners, directors, officers, employees, representatives, and agents are suspected terrorists or foreign terrorists, as defined in Executive Order 13224.
Additionally, the franchisee warrants that, to the best of their knowledge, none of the aforementioned individuals have been designated as suspected terrorists or foreign terrorists under the same Executive Order. This representation is crucial for Buona to ensure compliance with U.S. regulations and to avoid any potential legal or reputational risks associated with doing business with individuals or entities linked to terrorism.
This clause places a responsibility on the franchisee to conduct due diligence and remain informed about the status and affiliations of individuals associated with their business. Failure to comply with this provision could result in a breach of the franchise agreement and potential legal consequences for the franchisee. Prospective franchisees should carefully review this section and understand the implications of these representations and warranties before entering into an agreement with Buona.