Does the definition of 'Affiliate' for a Dog Haus franchise include entities under indirect control?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
The capitalized terms in this Agreement that are not defined elsewhere in the text of this Agreement are assigned these definitions:
- "Affiliate" or "Affiliates" means any person or Entity that controls, is controlled by, or is under common control with, a Party to this Agreement. Control of a person or Entity means the power, direct or indirect, to direct or cause the direction of the management and policies of such person or Entity whether by contract or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the definition of "Affiliate" includes entities under indirect control. The FDD specifies that an "Affiliate" is any entity that controls, is controlled by, or is under common control with a party to the agreement.
Critically, the definition of "control" extends beyond direct control. It encompasses the power, whether direct or indirect, to direct or cause the direction of the management and policies of a person or entity, regardless of whether this power is exerted through a contract or other means. This broad definition means that if an individual or company has the ability to influence the management and policies of another entity, even without direct ownership or contractual control, that entity could be considered an affiliate under the franchise agreement.
For a prospective Dog Haus franchisee, this definition is important because it clarifies the scope of relationships that could be subject to the terms and restrictions outlined in the franchise agreement. For example, any potential conflicts of interest or competitive activities involving affiliates could be scrutinized under the agreement. It is important for franchisees to understand the full extent of this definition and how it might affect their operations and relationships with other businesses or individuals.