Does the definition of 'Affiliate' for Big O Tires include entities under common control?

According to Big O Tires' 2025 Franchise Disclosure Document, the definition of 'Affiliate' does include entities under common control. The FDD specifies that an affiliate includes any entity that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with Big O Tires or the franchisee.

This definition is important for prospective franchisees because it clarifies the scope of relationships that Big O Tires considers to be affiliated. This can have implications for various aspects of the franchise agreement, such as non-compete clauses, transfer restrictions, and other contractual obligations. For instance, if a franchisee has a business that is considered an affiliate, it may be subject to certain restrictions or obligations under the franchise agreement.

Furthermore, the definition clarifies that an entity is also considered an affiliate of the franchisee if 50% or more of its equity or voting control is held by individuals or entities who also hold 50% or more of the equity or voting control of the franchisee. This ensures that Big O Tires can address situations where control is exerted through multiple layers of ownership or investment.

Understanding the definition of 'Affiliate' is crucial for any prospective Big O Tires franchisee to fully grasp the extent of their obligations and potential restrictions under the franchise agreement. It is advisable to carefully review this definition and seek legal counsel to understand its implications in the context of their specific circumstances.