For the purpose of defining 'affiliate' in the Clear Pest Pros franchise agreement, what does 'control' mean?

According to Clear Pest Pros' 2025 Franchise Disclosure Document, the term 'affiliate' is defined in relation to 'control.' Specifically, an affiliate is any entity directly or indirectly owned or controlled by, under common control with, or owning or controlling the franchisee or franchisor.

For the purpose of this definition, 'control' is explicitly defined as the power to direct or cause the direction of management and policies. This means that if an individual or entity has the authority to dictate the management decisions or policies of another entity, they are considered to be in control of that entity. This definition is important because it clarifies the scope of 'affiliate' and helps to determine the relationships that Clear Pest Pros considers relevant under the franchise agreement.

This definition has implications for franchisees as it relates to various aspects of the franchise agreement, including territorial rights, competitive restrictions, and liability. For example, if a franchisee has an ownership stake in another business that provides similar services, Clear Pest Pros might consider that business an affiliate and subject to certain restrictions outlined in the agreement. Understanding this definition is crucial for franchisees to ensure they are in compliance with the terms of their franchise agreement and to avoid potential conflicts of interest.