For a Beef O Bradys franchise, what section of the agreement defines 'Affiliate'?
Beef_O_Bradys Franchise · 2025 FDDAnswer from 2025 FDD Document
| TERM | DEFINITION |
|---|---|
| Affiliate | Any Business Entity directly or indirectly owned or controlled by a person. |
| Section 13.16 |
Source: Item 23 — RECEIPTS. (FDD pages 66–330)
What This Means (2025 FDD)
According to Beef O Bradys' 2025 Franchise Disclosure Document, the term 'Affiliate' is defined in Section 13.16 of the agreement. The FDD specifies that an affiliate is any business entity that is directly or indirectly owned or controlled by a person.
For a prospective franchisee, understanding the definition of 'Affiliate' is crucial because it clarifies the scope of relationships that could have implications under the franchise agreement. This definition is important when considering issues such as conflicts of interest, ownership structures, and compliance with the franchise agreement terms.
It is important for franchisees to review Section 13.16 in its entirety to fully understand the context and implications of this definition, as other clauses in the agreement may reference or depend on this definition. Franchisees should also seek legal counsel to ensure they fully understand their obligations and rights related to affiliated entities.