What is the definition of 'Affiliate' according to the Checkers franchise agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
1.04 Certain Definitions. The terms listed below have the meanings which follow them and include the plural as well as the singular. Other terms are defined elsewhere in this Agreement in the context in which they arise.
"Affiliate" – Any person or entity that directly or indirectly owns or controls the referenced party, that is directly or indirectly owned or controlled by the referenced party, or that is under common control with the referenced party. The term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an entity, whether through ownership of voting securities, by contract or otherwise.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, an 'Affiliate' is defined as any person or entity that directly or indirectly owns or controls the referenced party. This also includes entities that are directly or indirectly owned or controlled by the referenced party, or those under common control with the referenced party.
The term 'control' specifically refers to the power to direct the management and policies of an entity. This control can be exercised through various means, including ownership of voting securities or contractual agreements.
For a prospective Checkers franchisee, this definition is important because it clarifies the scope of entities that Checkers considers to be related to them. This can have implications for various aspects of the franchise agreement, such as territorial rights, competitive restrictions, and the franchisor's ability to operate similar businesses. Franchisees should understand this definition to fully grasp the potential impact of Checkers's business decisions and activities of related entities on their franchise.