Does Itan require franchisees to represent that their funding sources are not involved in terrorism?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **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.
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, franchisees and their owners must represent and warrant that their funding sources are not involved in terrorism. Specifically, they must declare that neither they, any owner, nor their funding sources are terrorists or suspected terrorists, according to anti-terrorism laws. They must also confirm that they are not identified 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.
This requirement extends beyond the initial agreement, as these representations and warranties are 'continuing' for the duration of the franchise relationship. This means that an Itan franchisee has an ongoing obligation to inform Itan immediately if any event or circumstance arises that could render these representations false, inaccurate, or misleading.
This provision is in place to ensure Itan complies with anti-terrorism laws and regulations. By requiring franchisees to make these representations, Itan aims to protect its brand and reputation from any association with terrorism or illegal activities. Prospective franchisees should carefully review this requirement and ensure they and their funding sources meet these criteria to avoid potential legal or contractual issues.
The representations also include compliance with 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.