What is the definition of 'Affiliates' in the Buona franchise agreement?

According to Buona's 2025 Franchise Disclosure Document, an 'Affiliate' is defined within the context of the franchise agreement. Specifically, it refers to a parent, subsidiary, or affiliate of the Franchisor. This definition is important because it clarifies the scope of certain obligations and restrictions within the franchise agreement.

For a prospective Buona franchisee, understanding the definition of 'Affiliates' is crucial because it impacts the protected area. Buona will not establish, nor grant another the right to establish a Buona Restaurant during the Term, within the area described in Exhibit A of this Agreement (the "Buona Protected Area"), without Franchisee's prior written consent, provided the franchisee or any of its affiliated companies is not otherwise in default of this Agreement or in default of any other agreement with Buona or with a parent, subsidiary or affiliate of Buona.

This definition also has implications regarding potential conflicts of interest or competition. For example, actions or defaults by an affiliate of the franchisee could impact the franchisee's standing under the agreement. Similarly, the franchisor's actions through its affiliates could affect the franchisee's business, making it important to understand the full scope of entities that fall under this definition.