Under the Card My Yard franchise agreement, what constitutes an 'Affiliate' of a named person?

According to Card My Yard's 2025 Franchise Disclosure Document, an 'Affiliate' or 'Affiliates' of a named person refers to any person or entity that is controlled by, controlling, or under common control with the named person.

This definition is important for prospective franchisees because it broadens the scope of certain obligations and restrictions within the franchise agreement. For example, provisions regarding non-compete clauses, compliance with agreements, and transfers of ownership may extend not only to the franchisee but also to their affiliates. This means that any business activities or potential defaults of an affiliated entity could impact the franchisee's standing with Card My Yard.

Understanding this definition is crucial for franchisees to ensure that all related parties are aware of and comply with the terms of the franchise agreement. This prevents unintended breaches and protects the franchisee's investment. Franchisees should carefully consider the implications of this definition when structuring their business and personal financial relationships.