How is 'Affiliate' defined in the context of section 17.01(h) of the Brain Balance Franchise Agreement?

According to the 2025 Brain Balance Franchise Disclosure Document, the term 'Affiliate' within section 17.01(h) of the franchise agreement refers to any person or entity that either controls, is controlled by, or is under common control with the person or entity in question.

This definition is important because it clarifies the scope of potential defaults and breaches of the franchise agreement. For example, if a Brain Balance franchisee denies the company the right to inspect, examine, or audit the center, it could trigger default events as outlined in section 17.01. The definition of 'Affiliate' extends this to include entities related to the franchisee through control, meaning actions by these affiliated entities could also impact the franchisee's compliance with the agreement.

For a prospective Brain Balance franchisee, understanding this definition is crucial for ensuring compliance and avoiding potential default situations. It means that not only their own actions but also the actions of related entities could have consequences under the franchise agreement. Franchisees should seek legal counsel to fully understand the implications of this definition and how it might affect their operations and relationships with other businesses or individuals.