What is the Itan franchisee's representation regarding compliance with orders from a Governmental Authority?
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.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchisee makes specific representations and warranties regarding compliance with laws, particularly concerning anti-terrorism and corrupt business practices. The franchisee and their owners must represent that they are in compliance with anti-terrorism laws and all other U.S. laws that prohibit corrupt business practices, money laundering, or support for those who commit acts of terror. This includes confirming that no property or interest owned by them is subject to being "blocked" under any Anti-Terrorism Law.
Furthermore, the franchisee and owners must warrant that they are not, nor have they ever been, a terrorist or suspected terrorist, or identified on any Terrorist List maintained by the U.S. Treasury Department's Office of Foreign Assets Control. These representations are ongoing, requiring continuous compliance with all relevant U.S. laws, including those enacted in the future.
This requirement places a significant responsibility on the Itan franchisee to ensure they, and their associated parties, are fully compliant with all applicable laws. Failure to comply with these representations could have severe legal and financial consequences, potentially leading to termination of the franchise agreement and other penalties. Prospective franchisees should conduct thorough due diligence to ensure they can meet these compliance obligations.