What is the definition of 'Person' in the Beehive Homes Franchise Agreement?
Beehive_Homes Franchise · 2025 FDDAnswer from 2025 FDD Document
As used in this Agreement, the following words and phrases shall have the meanings indicated:
- 2.1. "Affiliate" means any natural person or entity which, directly or indirectly, controls, is controlled by, or is under common Control with, the subject Person.
- 2.2. "Agreement" means this Franchise Agreement, including all exhibits, attachments and addenda and all amendments and modifications thereto made in writing and approved by the parties hereto, and all renewals thereof made in accordance herewith.
- 2.3. "Control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, or of the power to veto major policy decisions of an entity, whether through the ownership of voting securities, by contract, or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 34–123)
What This Means (2025 FDD)
According to the 2025 Beehive Homes Franchise Disclosure Document, the term 'Affiliate' is defined in relation to a 'Person'. An 'Affiliate' is any individual or entity that directly or indirectly controls, is controlled by, or is under common control with the 'Person' in question.
The term 'Control' itself is defined as possessing the power to direct or influence the management and policies of an entity, or to veto major policy decisions. This control can be exerted through various means, such as ownership of voting securities, contractual agreements, or other arrangements.
For a prospective Beehive Homes franchisee, this definition is important because it clarifies the scope of relationships that could be relevant to the franchise agreement. It helps determine which entities or individuals might be bound by certain obligations or restrictions due to their association with the franchisee or the franchisor. Understanding these definitions is crucial for ensuring compliance with the franchise agreement and avoiding potential conflicts of interest or breaches of contract.