Does the Chop5 Salad Kitchen franchisee represent that they will comply with anti-terrorism laws?
Chop5_Salad_Kitchen Franchise · 2024 FDDAnswer from 2024 FDD Document
- 11.4. Anti-Terrorism Compliance.
You and your Owners jointly and severally represent and warrant to us that, to the best of your knowledge: (a) no property or interest owned by you or any Owner is subject to being "blocked" under any Anti-Terrorism Law; (b) neither you nor any Owner, nor any of their respective funding sources (including any legal or beneficial owner of any Equity Interest in you) or related parties is, or has ever been: (i) a terrorist or suspected terrorist within the meaning of the Anti-Terrorism Law; or (ii) identified by name (or alias, pseudonym or nickname) or address on any Terrorist List, including on the list of "Specially Designated Nationals" or "Blocked Persons" maintained by the U.S. Treasury Department's Office of Foreign Assets Control (texts currently available at www.home.treasury.gov); and (c) you and the Owners are in compliance with, and shall continue to comply with, the Anti-Terrorism Law and all other Laws (either currently in effect or enacted in the future) prohibiting corrupt business practices, money laundering or the aid or support of Persons who conspire to commit acts of terror against any Person or government that are in effect within the United States of America.
The foregoing representations and warranties are 'continuing' representations and warranties for the duration of the franchise relationship.
Accordingly, you agree to notify us immediately in writing of the occurrence of any event or the development of any circumstance that might render any of the foregoing representations and warranties false, inaccurate or misleading.
Source: Item 23 — RECEIPT (FDD pages 50–178)
What This Means (2024 FDD)
According to the 2024 Chop5 Salad Kitchen FDD, franchisees and their owners must represent and warrant that they are in compliance with anti-terrorism laws. This includes confirming that no property or interest they own is subject to being "blocked" under any Anti-Terrorism Law. They must also confirm that neither they nor their funding sources are terrorists or suspected terrorists, nor are they identified on any Terrorist List maintained by the U.S. Treasury Department's Office of Foreign Assets Control. The relevant texts are available at www.home.treasury.gov.
Furthermore, the franchisee and owners must comply with all Anti-Terrorism Laws and other laws prohibiting corrupt business practices, money laundering, or support of those who conspire to commit acts of terror against any person or government within the United States. These representations and warranties are continuous for the duration of the franchise relationship.
This means that a prospective Chop5 Salad Kitchen franchisee must conduct thorough due diligence to ensure they and their ownership structure meet these requirements. They must also remain vigilant throughout the term of the franchise agreement, as any changes that could render these representations false must be immediately reported to Chop5 Salad Kitchen in writing. This clause places a significant compliance burden on the franchisee, requiring ongoing monitoring and reporting.