What is the 'Definition and Interpretation' covered in Section 1.1 of the 1-800-GOT-JUNK? Franchise Agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
DEFINITIONS 1.1 Definitions and Interpretation. In this Agreement and in every amendment hereto (unless otherwise specified in any particular amendment), the following shall apply: (a) “Affiliate” means any entity that, directly or indirectly through one or more intermediaries, is in control of, is controlled by, or is under common control with Franchisor. For purposes of this definition, “control” of an entity means the power, directly or indirectly, either to (a) vote 50% or more of the equity interests having ordinary voting power for the election of directors (or persons performing similar functions) of such entity, or (b) direct or cause the direction of the management and policies of such entity, whether by contract or otherwise.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 1-800-GOT-JUNK? Franchise Disclosure Document, section 1.1 of the franchise agreement covers 'Definitions and Interpretation'. This section defines the term "Affiliate" as any entity that directly or indirectly controls, is controlled by, or is under common control with 1-800-GOT-JUNK?.
For the purpose of this definition, "control" of an entity means the power, directly or indirectly, to either vote 50% or more of the equity interests having ordinary voting power for the election of directors (or persons performing similar functions) of such entity, or direct or cause the direction of the management and policies of such entity, whether by contract or otherwise.
This definition is important because it clarifies the scope of relationships that 1-800-GOT-JUNK? has with other entities, which may have implications for the franchisee. For example, it could affect the franchisee's dealings with suppliers or other service providers if those entities are considered affiliates of 1-800-GOT-JUNK?. Understanding the definition of "Affiliate" helps a franchisee understand the broader 1-800-GOT-JUNK? network and potential conflicts of interest.