In the Degree Wellness FDD, what is included in the definition of 'directly or indirectly'?

According to Degree Wellness's 2025 Franchise Disclosure Document, the term 'directly or indirectly' is used in the context of defining an 'affiliate.' The document states that an affiliate is any company directly or indirectly owned or controlled by the franchisee or their principal owners. It also includes any company directly or indirectly owned or controlled by Degree Wellness that engages in transactions with the franchisee.

This definition is important because it clarifies the scope of relationships that could be considered affiliates. This could have implications for various aspects of the franchise agreement, such as potential conflicts of interest, obligations, and liabilities. For example, if a franchisee's family member owns a business that competes with Degree Wellness, this could be seen as a conflict of interest depending on the level of ownership or control.

For a prospective franchisee, understanding this definition is crucial for transparency and compliance. It ensures that all related business interests are properly disclosed and that the franchisee is aware of any potential implications arising from these affiliations. It is a common practice in franchising to define 'affiliate' broadly to prevent franchisees from circumventing the terms of the franchise agreement through related entities.