How are 'affiliates' of the Bananas Smoothies Frozen Yogurt franchisee defined in the context of the franchise agreement?

According to the 2025 Bananas Smoothies Frozen Yogurt Franchise Disclosure Document, an 'affiliate' of the franchisee is defined as any person or entity that controls, is controlled by, or is under common control with the franchisee.

This definition is important because the actions of a franchisee's affiliates can have direct consequences on the franchise agreement. For instance, any default or breach of any agreement between the franchisor and an approved affiliate of the franchisee can be considered a default under the franchise agreement itself, potentially leading to termination of the agreement at the franchisor's discretion. Similarly, a default by the franchisee can be considered a default under agreements with its affiliates.

This interconnectedness creates a significant responsibility for the franchisee to ensure that its affiliates also comply with the terms and conditions of their respective agreements with the franchisor. The franchisee should carefully consider the implications of this definition and how the actions of related entities could impact their franchise agreement with Bananas Smoothies Frozen Yogurt.