What must an Itan franchisee do if an event occurs that might render the anti-terrorism representations false?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You and the Owners jointly and severally represent and warrant to us that, to the best of your and their knowledge: (a) no property or interest owned by you or any Owner is subject to being "blocked" under any Anti-Terrorism Law; (b) neither you nor any Owner, nor any of their respective funding sources (including any legal or beneficial owner of an Equity Interest in the Business or Franchisee Entity) or related parties is, or has ever been: (i) a terrorist or suspected terrorist within the meaning of the Anti-Terrorism Law; or (ii) identified by name, alias, pseudonym, nickname or address on any Terrorist List, including the list of "Specially Designated Nationals" or "Blocked Persons" maintained by the U.S.
Treasury Department's Office of Foreign Assets Control (texts currently available at www.home.treasury.gov); and (c) you and the Owners are in compliance with, and shall continue to comply with, the Anti-Terrorism Law and all other U.S.
Laws currently in effect, or enacted in the future, that prohibit corrupt business practices, money laundering or the aid or support of Persons who conspire to commit acts of terror against any Person or government.
The foregoing representations and warranties are 'continuing' representations and warranties for the duration of the franchise relationship.
Accordingly, you must immediately notify us of the occurrence of an event or development of a circumstance that might render any of the foregoing representations and warranties false, inaccurate or misleading.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchisee and any owners must make certain representations and warranties regarding anti-terrorism compliance. These representations confirm that neither the franchisee nor any owner is a known or suspected terrorist, nor are they on any Terrorist List maintained by the U.S. Treasury Department's Office of Foreign Assets Control. They also warrant that they are in compliance with all anti-terrorism laws and laws prohibiting corrupt business practices, money laundering, or support of those who commit acts of terror.
These representations and warranties are 'continuing' for the duration of the franchise relationship. This means that the franchisee's obligations don't end after signing the agreement but remain in effect throughout the term of the franchise.
Therefore, if an event occurs or a circumstance develops that might make any of these representations false, inaccurate, or misleading, the Itan franchisee has a responsibility to immediately notify Itan. This ensures that Itan is aware of any potential issues and can take appropriate action to protect its brand and reputation.