factual

What is the meaning of 'Affiliate' in the Burger King agreement?

Burger_King Franchise · 2025 FDD

Answer from 2025 FDD Document

"Affiliate" means any Person which directly or indirectly Controls, is Controlled by, or is under common Control with another Person.

Source: Item 22 — CONTRACTS (FDD pages 125–127)

What This Means (2025 FDD)

According to Burger King's 2025 Franchise Disclosure Document, an 'Affiliate' refers to any entity or person that directly or indirectly controls, is controlled by, or is under common control with another person. This definition is important for prospective franchisees to understand because it clarifies the scope of Burger King's corporate structure and its related entities.

This definition has several practical implications for a Burger King franchisee. For example, Burger King may, in its sole discretion, elect to pay any amount owed by Burger King or any of its Affiliates to the franchisee by crediting any account of the franchisee or reducing any financial obligation of the franchisee to Burger King or its Affiliates. Also, franchisees must satisfy all outstanding obligations to Burger King and its Affiliates to transfer the franchise.

Understanding the concept of 'Affiliate' helps franchisees recognize the different entities with which they may interact and the potential obligations or benefits that may arise from those interactions. This is a fairly standard definition of 'affiliate' seen across many franchise agreements.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.