What is the impact on the Crowne Plaza agreement if a party violates OFAC regulations?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
In any such event, the non-performing party shall be excused from any further performance and observance of the obligations so affected only for as long as such circumstances prevail and such party continues to use commercially reasonable efforts to recommence performance or observance as soon as practicable.
- 19.2 Compliance with Laws. Each party is responsible for determining all Applicable Law that is applicable to it and for complying with all such Applicable Law in connection with the Agreement.
You further agree to cooperate and provide information requested by Servicers, as Servicers determine necessary, to facilitate Servicers' compliance with Applicable Law, including without limitation the rules and regulations promulgated by OFAC and the USA PATRIOT Act.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, both the Eligible Participant (franchisee) and AT&T must comply with the economic and trade sanctions administered by the United States Office of Foreign Assets Control (OFAC). This includes adherence to all Executive Orders and implementing regulations.
The agreement stipulates that neither party should be controlled by any person or entity identified on OFAC's Specially Designated Nationals and Blocked Persons List, nor should they be organized under the laws of a jurisdiction subject to comprehensive OFAC sanctions. Furthermore, both parties warrant that they will not facilitate any transactions or services to any persons in violation of United States economic and trade sanctions.
The agreement also specifies that no payments made under the agreement should involve funds obtained on behalf of any OFAC Blocked Persons or in violation of any United States economic sanctions and/or embargo, unless AT&T is specifically authorized by OFAC to engage in such transactions. The FDD states that in the event of any such violation, the non-performing party shall be excused from any further performance and observance of the obligations so affected only for as long as such circumstances prevail and such party continues to use commercially reasonable efforts to recommence performance or observance as soon as practicable.