Where in the Cicis Franchise Agreement can I find information about the franchisee's obligations regarding legal compliance?
Cicis Franchise · 2025 FDDAnswer from 2025 FDD Document
Prohibited Parties Clause. I acknowledge that Franchisor, its employees and its agents are subject to U.S. laws that prohibit or restrict (a) transactions with certain parties, and (b) the conduct of transactions involving certain foreign parties. These laws include, without limitation, U.S. Executive Order 13224, the U.S. Foreign Corrupt Practices Act, the Bank Secrecy Act, the International Money Laundering Abatement and Anti-terrorism Financing Act, the Export Administration Act, the Arms Export Control Act, the U.S. Patriot Act, and the International Economic Emergency Powers Act, and the regulations issued pursuant to these and other U.S. laws. As part of the express consideration for the purchase of the franchise, I represent that neither I nor any of my employees, agents, or representatives, nor any other person or entity associated with me, is now, or has been listed on:
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- the U.S. Treasury Department's List of Specially Designated Nationals;
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- the U.S. Commerce Department's Denied Persons List, Unverified List, Entity List, or General Orders;
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- the U.S. State Department's Debarred List or Nonproliferation Sanctions; or
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- the Annex to U.S. Executive Order 13224.
I warrant that neither I nor any of my employees, agents, or representatives, nor any other person or entity associated with me, is now, or has been: (i) a person or entity who assists, sponsors, or supports terrorists or acts of terrorism; or (ii) is owned or controlled by terrorists or sponsors of terrorism. I warrant that I am now, and have been, in compliance with U.S. anti-money laundering and counter-terrorism financing laws and regulations, and that any funds provided by me to Franchisor were legally obtained in compliance with these laws.
Attachment D to Franchise Agreement – 2
I further covenant that neither I nor any of my employees, agents, or representatives, nor any other person or entity associated with me, will, during the term of the Franchise Agreement and/or the Area Development Agreement, become a person or entity described above or otherwise become a target of any anti-terrorism law.
Source: Item 22 — CONTRACTS (FDD pages 64–65)
What This Means (2025 FDD)
According to the 2025 Cicis Franchise Disclosure Document, Attachment D to the Franchise Agreement contains information regarding the franchisee's obligation to comply with U.S. laws. Specifically, it addresses compliance with laws that prohibit or restrict transactions with certain parties, including U.S. Executive Order 13224, the U.S. Foreign Corrupt Practices Act, the Bank Secrecy Act, the International Money Laundering Abatement and Anti-terrorism Financing Act, the Export Administration Act, the Arms Export Control Act, the U.S. Patriot Act, and the International Economic Emergency Powers Act.
The franchisee must represent and warrant that neither they nor any associated parties are listed on the U.S. Treasury Department's List of Specially Designated Nationals, the U.S. Commerce Department's Denied Persons List, Unverified List, Entity List, or General Orders, the U.S. State Department's Debarred List or Nonproliferation Sanctions, or the Annex to U.S. Executive Order 13224. Furthermore, they must warrant that they are not involved in assisting, sponsoring, or supporting terrorists or acts of terrorism, and that they comply with U.S. anti-money laundering and counter-terrorism financing laws.
The franchisee also covenants that during the term of the Franchise Agreement and/or the Area Development Agreement, neither they nor any associated parties will become a person or entity described above or otherwise become a target of any anti-terrorism law. This clause emphasizes the franchisee's ongoing responsibility to adhere to these legal requirements throughout their relationship with Cicis.