What is the definition of 'Affiliate' in the Crisp & Green Franchise Agreement?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
"Affiliate" – Any person or Entity that directly or indirectly owns or controls the referenced party, that is directly or indirectly owned or controlled by the referenced party, or that is under common control with the referenced party. The term "control" means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of an Entity, whether through ownership of voting securities, by contract or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, an 'Affiliate' is defined as any person or entity that directly or indirectly owns or controls the referenced party. This also includes any person or entity that is directly or indirectly owned or controlled by the referenced party, or that is under common control with the referenced party.
The term 'control' specifically refers to the power to direct or cause the direction of the management and policies of an entity. This control can be exercised through various means, such as ownership of voting securities or contractual agreements.
For a prospective Crisp & Green franchisee, this definition is important because it clarifies the scope of relationships that Crisp & Green has with other entities. This can impact various aspects of the franchise agreement, such as territorial rights, competitive restrictions, and the franchisor's ability to operate or franchise other businesses under different brands.