What representation does the Itan franchisee make regarding compliance with applicable laws?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
tly and severally represent and warrant to us that you and the Owners are aware that: (a) other franchisees may operate under different forms of agreement and our obligations and rights with respect to franchisees differs materially in certain circumstances; and (b) we may negotiate terms or offer concessions to other franchisees and we have no obligation to offer you the same or similar negotiated terms or concessions.
- 23.3. Anti-Terrorism Compliance. 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.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchisee and owners must jointly and severally represent and warrant their compliance with anti-terrorism laws and other U.S. laws. This includes laws that prohibit corrupt business practices, money laundering, or support for those who conspire to commit acts of terror.
Specifically, the franchisee and owners must warrant that no property or interest they own is subject to being "blocked" under any Anti-Terrorism Law. They also must confirm that neither they nor their funding sources are terrorists or suspected terrorists, nor are they identified on any Terrorist List maintained by the U.S. Treasury Department's Office of Foreign Assets Control.
These representations and warranties are ongoing for the duration of the franchise relationship. The franchisee is obligated to immediately notify Itan if any event or circumstance occurs that might render these representations false, inaccurate, or misleading. This ensures Itan maintains compliance and is aware of any potential legal issues related to the franchisee's operations.