According to the Craters & Freighters franchise agreement, what is the definition of 'Affiliate'?

According to the 2025 Craters & Freighters Franchise Disclosure Document, an 'Affiliate' is defined within the context of the franchise agreement. Specifically, it refers to any person or entity that either controls Craters & Freighters, is controlled by Craters & Freighters, or is under common control with Craters & Freighters or the franchisee. This definition is important because it clarifies the scope of certain rights and restrictions outlined in the agreement.

For a prospective Craters & Freighters franchisee, understanding this definition is crucial for several reasons. It helps define the boundaries of the franchisee's exclusive territory, as neither Craters & Freighters nor its affiliates can operate or franchise another fixed location within the franchisee's territory. It also affects non-compete clauses, which restrict the franchisee from engaging with businesses affiliated with Craters & Freighters that offer similar services.

The definition of 'Affiliate' also plays a role in the National Accounts Program, where an affiliate of Craters & Freighters may solicit and administer business accounts for packaging and shipping. Craters & Freighters retains the right to assign work to its affiliates if the franchisee fails to meet the requirements of a National Account agreement. Therefore, franchisees need to be aware of how Craters & Freighters's affiliates might interact with their business operations and market territory.