What does the term 'Affiliate' mean in the context of the Buff City Soap agreement?

According to the 2025 Buff City Soap Franchise Disclosure Document, an 'Affiliate' refers to any entity or person that controls, is controlled by, or is under common control with a specified person or entity. This definition is important for prospective franchisees to understand because it clarifies the scope of Buff City Soap's rights and obligations, as well as the rights and obligations of related entities.

For a Buff City Soap franchisee, this definition has several practical implications. For example, the franchisor's affiliates may have certain rights regarding advertising, operating other locations, and selling products and services under the Buff City Soap brand. The franchise agreement outlines that Buff City Soap and its affiliates can advertise and promote the Buff City Soap system both inside and outside of a franchisee's protected area. They can also operate or license others to operate Buff City Soap makeries outside the protected area, even adjacent to it.

Furthermore, Buff City Soap and its affiliates retain the right to offer and sell products and services, including those typically found in Buff City Soap makeries, through various channels of distribution, such as supermarkets, discount stores, and online platforms. They can also establish and operate businesses other than Buff City Soap makeries under the Buff City Soap brand or other brands, including businesses that Buff City Soap or its affiliates may acquire or merge with. Understanding the definition of 'Affiliate' helps a franchisee recognize the potential scope of the franchisor's activities and their impact on the franchisee's business.

In essence, the 'Affiliate' definition broadens the scope of actions that Buff City Soap can take, potentially impacting a franchisee's market and sales channels. Franchisees should carefully consider this definition and its implications for their investment and business operations.