Is it permissible under the Ella Cafe agreement for the developer or its owners to be identified as 'Specially Designated Nationals' or 'Blocked Persons' maintained by the U.S. Treasury Department's Office of Foreign Assets Control?
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);
- (b) "Unverified List" maintained by the U.S.
Commerce Department's Bureau of Industry and Security (http://www.bis.doc.gov/Enforcement/UnverifiedList/unverified
Source: Item 23 — RECEIPTS (FDD pages 50–181)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, the developer and its owners must not be identified on any lists of restricted or denied parties maintained by the U.S. government. This includes the 'Specially Designated Nationals' or 'Blocked Persons' list maintained by the U.S. Treasury Department's Office of Foreign Assets Control.
Ella Cafe requires that the developer warrants and represents that neither they nor any of their owners, officers, directors, managers, partners, agents, or employees, or their respective interests, are currently identified or will be during the term of the agreement on any of the lists of restricted or denied parties maintained by the U.S. government.
The developer must immediately notify Ella Cafe in writing if any event or circumstance occurs that might render any of these representations and warranties false, inaccurate, or misleading. This ensures that Ella Cafe maintains compliance with U.S. government regulations and avoids any potential legal or reputational risks associated with being affiliated with restricted parties.