How is 'Affiliate' defined in relation to a Buff City Soap franchisee?
Buff_City_Soap Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) "Affiliate" means, with respect to a named Person, any Person that is controlled by, controlling or under common control with the named Person.
Source: Item 23 — Receipts (FDD pages 69–186)
What This Means (2025 FDD)
According to Buff City Soap's 2025 Franchise Disclosure Document, an 'Affiliate' is defined in relation to a 'Person.' In this context, a 'Person' refers to any individual or entity associated with the Buff City Soap franchisee.
Specifically, an 'Affiliate' is any entity that controls, is controlled by, or is under common control with the named 'Person,' meaning the franchisee or a business entity owned by the franchisee. This definition is crucial for understanding the scope of various contractual obligations and restrictions outlined in the Franchise Agreement. For example, it could impact non-compete clauses or confidentiality agreements, extending those obligations not only to the franchisee but also to any affiliated entities.
This definition ensures that Buff City Soap can enforce its franchise agreement terms broadly, preventing franchisees from circumventing their obligations by operating through related entities. Prospective franchisees should carefully consider this definition and how it might affect their other business interests or relationships.