How is 'Affiliate' defined in the Craters & Freighters franchise agreement?

According to Craters & Freighters' 2025 Franchise Disclosure Document, an 'Affiliate' is defined within the franchise agreement as any person or entity that controls, is controlled by, or is in common control with, either the Franchisor or the Franchisee. This definition is important because the actions and rights of Affiliates are often considered alongside those of the Franchisor in various aspects of the franchise agreement.

For a prospective Craters & Freighters franchisee, understanding this definition is crucial because it clarifies the scope of certain obligations and restrictions. For example, Craters & Freighters and its Affiliates retain the right to own, franchise, or operate outlets outside the franchisee's territory. Additionally, franchisees are restricted from soliciting business from Craters & Freighters or its Affiliate-owned businesses for a Competitive Business.

The definition of 'Affiliate' extends to various aspects of the franchise relationship, including non-compete clauses and the National Accounts Program. Craters & Freighters has developed a National Accounts Program in connection with an Affiliate, which solicits and administers business accounts for packaging and shipping from businesses with operations in multiple territories. The franchisor can assign work to its affiliates if the franchisee fails to meet the requirements of a National Account agreement.

In summary, the definition of 'Affiliate' in the Craters & Freighters franchise agreement is broad, encompassing any entity under common control with either the franchisor or franchisee. This has significant implications for the franchisee's rights, restrictions, and obligations, particularly concerning territorial exclusivity, competition, and participation in the National Accounts Program.