According to the Cool Binz FDD, what constitutes an 'Affiliate'?
Cool_Binz Franchise · 2025 FDDAnswer from 2025 FDD Document
The following terms which are used in this Section and throughout this Agreement are defined as follows:
Affiliate: any person or entity directly or indirectly owned or controlled by, under common control with, or owning or controlling you or us. For purposes of this definition, "control" means the power to direct or cause the direction of management and policies.
COOL BINZ Affiliates: A collective reference for COOL BINZ franchisee(s), Company Store(s), us and/or COOL BINZ North America, LLC ("CBNA").
Source: Item 23 — RECEIPTS (FDD pages 63–238)
What This Means (2025 FDD)
According to Cool Binz's 2025 Franchise Disclosure Document, an 'Affiliate' refers to any person or entity directly or indirectly owned or controlled by, under common control with, or owning or controlling either the franchisee or Cool Binz itself. The FDD specifies that 'control' in this context means the power to direct or cause the direction of management and policies.
For a prospective Cool Binz franchisee, this definition is important because it clarifies the scope of relationships that could have implications for the franchise agreement. For example, if a franchisee has a business partner who exerts control over their Cool Binz franchise, that partner would be considered an affiliate. Similarly, any entity that Cool Binz controls or is controlled by would also be considered an affiliate.
Understanding the definition of 'Affiliate' is crucial for franchisees as it relates to various aspects of the franchise agreement, including potential conflicts of interest, transfer restrictions, and competitive activities. Cool Binz also defines 'COOL BINZ Affiliates' as a collective reference for COOL BINZ franchisee(s), Company Store(s), Cool Binz itself and/or COOL BINZ North America, LLC ('CBNA').