What does the Face Foundrie Area Developer represent and warrant regarding the Patriot Act?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.5 Patriot Act.
Area Developer represents and warrants that to its actual knowledge: (i) neither Area Developer, nor its officers, directors, managers, members, partners or other individual who manages the affairs of Area Developer, nor any Area Developer affiliate or related party, or any funding source for any Franchised Facial Bar, is identified on the lists of Blocked Persons, Specially Designated Nationals, Specially Designated Terrorists, Specially Designated Global Terrorists, Foreign Terrorists Organizations, and Specially Designated Narcotics Traffickers at the United States Department of Treasury's Office of Foreign Assets Control (OFAC), or the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, commonly known as the "USA Patriot Act," as such lists may be amended from time to time (collectively, "Blocked Person(s)"); (ii) neither Area Developer nor any Area Developer affiliate or related party is directly or indirectly owned or controlled by the government of any country that is subject to an embargo imposed by the United States government; (iii) neither Area Developer nor any Area Developer affiliate or related party is acting on behalf of the government of, or is involved in business arrangements or other transactions with, any country that is subject to such an embargo; (iv) neither Area Developer nor any Area Developer affiliate or related party are on the United States Department of Commerce Denied Persons, Entity and Unverified Lists, or the United States Departments of State's Debarred List, as such lists may be amended from time to time (collectively, the "Lists"); (v) neither Area Developer nor any Area Developer affiliate or related party, during the term of this Agreement, will be on any of the Lists or identified as a Blocked Person; and (vi) during the term of this Agreement, neither Area Developer nor any Area Developer affiliate or related party will sell products, goods or services to, or otherwise enter into a business arrangement with, any person or entity on any of the Lists or identified as a Blocked Person.
Area Developer agrees to notify Franchisor in writing immediately upon the occurrence of any act or event that would render any of these representations incorrect.
Source: Item 23 — RECEIPTS (FDD pages 74–257)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the Area Developer makes several representations and warranties concerning compliance with the Patriot Act. Specifically, the Area Developer confirms that, to their knowledge, neither they, their officers, directors, managers, members, partners, nor any affiliated parties or funding sources are identified on any lists of Blocked Persons, Specially Designated Nationals, Specially Designated Terrorists, or similar lists maintained by the United States Department of Treasury's Office of Foreign Assets Control (OFAC) or under the USA Patriot Act.
Furthermore, the Area Developer warrants that they are not directly or indirectly owned or controlled by the government of any country subject to a U.S. embargo, nor are they acting on behalf of such a government or involved in business transactions with such a country. They also confirm that they are not on the United States Department of Commerce Denied Persons, Entity and Unverified Lists, or the United States Departments of State's Debarred List.
The Area Developer also commits that during the term of the Area Development Agreement, they will not be placed on any of these lists or identified as a Blocked Person. Additionally, they agree not to sell products, goods, or services to, or enter into business arrangements with, any person or entity on these lists or identified as a Blocked Person during the agreement's term.
Finally, the Area Developer is obligated to notify Face Foundrie immediately in writing if any event occurs that would make any of these representations incorrect. This clause ensures that Face Foundrie can take appropriate action if an Area Developer's status changes in relation to these regulations, protecting the franchise system from potential legal and reputational risks.