According to Aplus's 2024 Franchise Disclosure Document, the term 'Affiliate' is specifically defined within the context of the Development Agreement. It encompasses any entity that is affiliated with, a subsidiary of, or a parent of a named person, entity, or Owner. The definition also includes any entity controlled by, controlling, or under common control with such named person, entity, or Owner.

For a prospective Aplus franchisee, this definition is important because it broadens the scope of responsibility and potential liability under the Development Agreement. For example, if a franchisee's parent company engages in activities that violate the Development Agreement, Aplus could hold the franchisee accountable due to the affiliation. Similarly, actions of a subsidiary could impact the franchisee's standing with Aplus.

This definition is fairly standard in franchising. It is designed to prevent franchisees from circumventing the terms of their agreements by operating through related entities. Franchisees should carefully consider the implications of this definition and ensure that all affiliated entities are aware of and comply with the terms of the Aplus Development Agreement to avoid potential breaches or disputes.