How does the Cd One Price Cleaners franchise agreement define the term 'affiliate'?

According to the 2025 Cd One Price Cleaners Franchise Disclosure Document, the term 'affiliate' is specifically defined within the franchise agreement. For the purposes of the agreement, an 'affiliate' refers to any person or legal entity that directly or indirectly controls, is controlled by, or is under common control with the specified person or legal entity. This definition is important because it clarifies the scope of relationships that may be relevant to the franchise agreement.

This definition has several practical implications for a prospective Cd One Price Cleaners franchisee. It means that the franchisor can consider the actions and financial stability of entities related to the franchisee when assessing compliance with the franchise agreement. For example, if a franchisee is owned by a larger corporation, the financial health and business practices of that corporation could be taken into account. Similarly, if the franchisee controls other businesses, those businesses could also be subject to scrutiny under the terms of the agreement.

Furthermore, the definition of 'affiliate' extends to the franchisor as well. This means that the franchisee's obligations and rights under the agreement may be affected by the actions of the franchisor's related entities. It is important for a prospective franchisee to understand this definition and how it might impact their operations and relationship with Cd One Price Cleaners. Understanding the scope of 'affiliate' helps franchisees assess potential risks and benefits associated with the franchise agreement.