Does the Ella Cafe franchise agreement permit the franchisee or its personnel to be identified on any United States government lists of restricted or denied parties during the term of the agreement?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
Developer hereby warrants and represents that neither it nor any of its Owners, officers, directors, managers, partners, agents, or employees, or their respective interests therein is now (nor will be during the Term of this Agreement) identified, either by name or an alias, pseudonym, or nickname, on any of the lists of restricted or denied parties maintained by the United States government, including:
- (a) "Denied Persons List" maintained by the U.S.
Commerce Department's Bureau of Industry and Security (http://www.bis.doc.gov/dpl/Default.shtml);
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to the 2024 Ella Cafe Franchise Disclosure Document, the franchise agreement stipulates that neither the franchisee nor any of its owners, officers, directors, managers, partners, agents, or employees, or their respective interests, can be identified on any lists of restricted or denied parties maintained by the U.S. government, either at the time of signing the agreement or during its term. This includes identification by name, alias, pseudonym, or nickname.
This requirement ensures that Ella Cafe maintains compliance with U.S. government regulations and avoids any potential legal or reputational risks associated with being connected to individuals or entities on restricted lists. For a prospective franchisee, this means a thorough background check and ongoing compliance are necessary to maintain the franchise agreement.
The specific list mentioned in the FDD is the "Denied Persons List" maintained by the U.S. Commerce Department's Bureau of Industry and Security. This clause in the franchise agreement is a protective measure for Ella Cafe, ensuring that its franchisees meet certain legal and ethical standards, which is a common practice in franchising to protect the brand and the network.