In the context of the Dq Treat FDD, what is the definition of 'Affiliate'?
Dq_Treat Franchise · 2025 FDDAnswer from 2025 FDD Document
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties hereto agree as follows:
TERMS AND CONDITIONS
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- DEFINITIONS.
- 1.1 "Affiliate" means any person or entity, that now or hereafter, that directly, or indirectly through one or more intermediaries, controls, is controlled by, or us under common control with, the Party specified.
Source: Item 17 — The following paragraph is added to the end of Item 17 of the Disclosure Document: (FDD pages 70–378)
What This Means (2025 FDD)
According to the 2025 Dq Treat FDD, an 'Affiliate' is defined as any person or entity that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the specified party. This definition is important for prospective franchisees to understand because it clarifies the relationships between Dq Treat and other entities that may have a bearing on the franchise agreement.
This definition is relevant in several contexts within the franchise agreement. For instance, Dq Treat may have obligations to its affiliates, or the franchisee may interact with affiliates in various aspects of the business, such as supply chain or marketing. Understanding the scope of 'Affiliate' helps a franchisee recognize the full network of related parties and potential influences on their business operations.
For a prospective Dq Treat franchisee, this definition highlights the importance of understanding the broader corporate structure and potential relationships that Dq Treat has with other entities. It is a fairly standard definition in franchising, but its implications can be significant in terms of obligations, liabilities, and business dealings.