How is 'affiliate' defined in the Cool Binz agreement?

According to Cool Binz's 2025 Franchise Disclosure Document, an 'affiliate' is defined as any person or entity directly or indirectly owned or controlled by, under common control with, or owning or controlling the franchisee or Cool Binz itself. The definition specifies that 'control' means the power to direct or cause the direction of management and policies. This definition is important because it clarifies the scope of relationships that are subject to the terms and conditions outlined in the franchise agreement.

This definition has several implications for a prospective Cool Binz franchisee. First, it means that any business entities the franchisee controls, or is controlled by, are also bound by the franchise agreement. This could impact the franchisee's ability to engage in other business ventures or investments. Second, the definition extends to entities under 'common control,' which means that if the franchisee is part of a larger network of businesses with shared management, those businesses could also be considered affiliates.

Understanding the definition of 'affiliate' is crucial for franchisees to ensure they do not inadvertently violate the terms of their franchise agreement through the actions of related entities. Franchisees should carefully consider this definition and how it might impact their other business interests or relationships before entering into a franchise agreement with Cool Binz. It is also important to note that Cool Binz Affiliates include COOL BINZ franchisee(s), Company Store(s), Cool Binz, and/or COOL BINZ North America, LLC ('CBNA').