Is it prohibited for any of the Ella Cafe franchisee's owners to be on the 'Specially Designated Nationals' or 'Blocked Persons' list maintained by the U.S. Treasury Department's Office of Foreign Assets Control?
Ella_Cafe Franchise · 2024 FDDAnswer from 2024 FDD Document
(h) Franchisee 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:
i. "Denied Persons List" maintained by the U.S.
Commerce Department's Bureau of Industry and Security (http://www.bis.doc.gov/dpl/Default.shtml);
- ii. "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 22 — CONTRACTS (FDD page 50)
What This Means (2024 FDD)
According to Ella Cafe's 2024 Franchise Disclosure Document, Ella Cafe franchisees and their owners, officers, directors, managers, partners, agents, or employees cannot be 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.
This requirement is a continuing representation and warranty, meaning it must be true not only when the franchise agreement is signed but throughout the term of the agreement. The franchisee must immediately notify Ella Cafe in writing if any event or circumstance occurs that might make this representation false, inaccurate, or misleading.
This provision is included to ensure that Ella Cafe complies with U.S. laws and regulations, particularly those related to national security and international trade. Franchisees should conduct thorough due diligence to ensure that none of their owners or employees are on any restricted lists, as being on such a list could result in the termination of the franchise agreement.