Is a Cicis franchisee's personal character a factor in Cicis entering into the franchise agreement?
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, a franchisee's personal character is a factor in Cicis entering into the franchise agreement. As part of the consideration for purchasing a Cicis franchise, the franchisee must represent that they, their employees, agents, representatives, or any associated person or entity are not 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, or the U.S. State Department's Debarred List or Nonproliferation Sanctions.
Furthermore, the franchisee must warrant that neither they nor their associated parties are individuals or entities that assist, sponsor, or support terrorists or acts of terrorism, or are owned or controlled by terrorists or sponsors of terrorism. They must also warrant that they comply with U.S. anti-money laundering and counter-terrorism financing laws and that any funds provided to Cicis were legally obtained in compliance with these laws.
The franchisee also covenants that during the term of the Franchise Agreement and/or the Area Development Agreement, neither they nor their associated parties will become a person or entity described above or otherwise become a target of any anti-terrorism law. This clause emphasizes Cicis's commitment to adhering to U.S. laws and regulations regarding prohibited parties and transactions, reflecting the importance of the franchisee's character and compliance with legal standards.