For Hck Hot Chicken, what laws are considered 'Anti-Terrorism Laws'?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
12.5.4 Franchisee shall promptly notify Franchisor upon becoming aware of any violation of this Section or of information to the effect that any person or entity whose status is subject to confirmation pursuant to Section 12.5.3 above is identified on any Terrorist List, any list maintained by OFAC or to being "blocked" under any Anti-Terrorism Laws, in which event Franchisee shall cooperate with Franchisor in an appropriate resolution of such matter.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 54)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, compliance with Anti-Terrorism Laws is a requirement for both the franchisee and their owners. These laws include the International Money Laundering Abatement and Anti-Terrorist Financing Act, as amended, along with any subsequent amendments or successors. Franchisees must also confirm that they, their owners, and any funding sources are not identified on any Terrorist List or are affiliates of anyone so identified. Additionally, their property or interests should not be subject to being "blocked" under any Anti-Terrorism Laws.
In practical terms, this means a prospective Hck Hot Chicken franchisee must conduct thorough due diligence to ensure they and their financial backers are in compliance with all applicable anti-terrorism regulations. This includes verifying that no one involved is on any government watch lists or has any connections to entities that might be.
The franchisee is obligated to implement anti-money laundering policies and procedures, including "know-your-customer" verification programs, as required by law. Furthermore, the franchisee must promptly inform Hck Hot Chicken if they become aware of any violations or information suggesting that someone associated with the franchise is identified on a Terrorist List or is being "blocked" under Anti-Terrorism Laws.
Failure to comply with these regulations could have serious consequences, potentially leading to legal repercussions and damage to the Hck Hot Chicken brand. Franchisees are expected to cooperate with Hck Hot Chicken in resolving any issues related to these laws.