What is the definition of 'affiliate' in the context of agreements that can lead to termination of the Desi District franchise agreement?

Based on the 2024 Desi District Franchise Disclosure Document, an affiliate is relevant in the context of franchise agreement terminations. Specifically, if Desi District (or any affiliate) terminates any other agreement with the franchisee (or any affiliate) due to a breach of that other agreement by the franchisee (or its affiliate), Desi District has the right to terminate the franchise agreement. However, the termination of a Multi-Unit Development Agreement with the franchisee or its affiliate does not give Desi District the right to terminate the franchise agreement.

This clause means that a Desi District franchisee's compliance extends beyond just the franchise agreement itself. Any agreement the franchisee or their affiliate has with Desi District or its affiliates could impact the status of their franchise. For example, if a franchisee has a separate supply agreement with an affiliate of Desi District and breaches that agreement, it could lead to the termination of the franchise agreement.

It is important for prospective franchisees to understand the scope of agreements they or their business entities might have with Desi District or its related entities. Franchisees should carefully review all related agreements and ensure compliance to avoid potential termination of their Desi District franchise. This is a fairly standard clause in franchise agreements, designed to protect the integrity of the brand and the network.