For Hck Hot Chicken, what constitutes a prohibited money laundering activity for the franchisee and its owners?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Anti-Terrorism Laws or identified by name or address on any
Terrorist List. Each of Franchisee and its Owners are in compliance with Applicable Law, including all such Anti-Terrorism Laws;
- (c) Neither Franchisee nor any of its Owners conducts any activity, or has failed to conduct any activity, if such action or inaction constitutes a money laundering crime, including any money laundering crime prohibited under the International Money Laundering Abatement and Anti- Terrorist Financing Act, as amended, and any amendments or successors thereto.
- (d) Franchisee is neither directly nor indirectly owned or controlled by the government of any country that is subject to a United States embargo. Nor does Franchisee or its Owners act directly or indirectly on behalf of the government of any country that is subject to a United States embargo.
- 12.5.2 Franchisee has taken all necessary and proper action required by Applicable Law and has the right to execute this Agreement and perform under all of its terms. Franchisee shall implement and comply with antimoney laundering policies and procedures that incorporate "know-your- customer" verification programs and such other provisions as may be required by applicable law.
- 12.5.3 Franchisee shall implement procedures to confirm, and shall confirm, that (a) none of Franchisee, any person or entity that is at any time a legal or beneficial owner of any interest in Franchisee or that provides funding to Franchisee is identified by name or address on any Terrorist List or is an Affiliate of any person so identified; and (b) none of the property or interests of Franchisee is subject to being "blocked" under any Anti-Terrorism Laws.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, franchisees and their owners must comply with all applicable laws, including anti-terrorism laws. A prohibited money laundering activity includes any action or inaction that constitutes a money laundering crime, specifically those prohibited under the International Money Laundering Abatement and Anti-Terrorist Financing Act, including any amendments or successors to that act.
Furthermore, franchisees must implement anti-money laundering policies and procedures that incorporate "know-your-customer" verification programs, as required by applicable law. Franchisees must also confirm that neither they, any legal or beneficial owner, nor anyone providing funding to the franchisee is identified on any Terrorist List or is an affiliate of anyone so identified. Additionally, the franchisee must ensure that none of their property or interests are subject to being "blocked" under any Anti-Terrorism Laws.
If a franchisee becomes aware of any violation of these stipulations or discovers that a person or entity is identified on a Terrorist List or is being "blocked" under Anti-Terrorism Laws, they must promptly notify Hck Hot Chicken. The franchisee is then required to cooperate with Hck Hot Chicken in resolving the matter appropriately. These measures are in place to ensure that Hck Hot Chicken and its franchisees operate within legal and ethical boundaries, safeguarding the brand's reputation and integrity.