What is the definition of 'Affiliate' in the Face Foundrie franchise agreement?
Face_Foundrie Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.04 Certain Definitions. The terms listed below have the meanings which follow them and include the plural as well as the singular.
Other terms are defined elsewhere in this Agreement in the context in which they arise.
- (a) "Affiliate" Any Person 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 22 — CONTRACTS (FDD pages 73–74)
What This Means (2025 FDD)
According to Face Foundrie's 2025 Franchise Disclosure Document, the term 'Affiliate' is specifically defined within the franchise agreement. An 'Affiliate' refers to any person or entity that directly or indirectly owns or controls the party in question, is directly or indirectly owned or controlled by that party, or is under common control with that party.
The definition of 'control' is further clarified as the possession, whether direct or indirect, of the power to direct or cause the direction of the management and policies of an entity. This control can be exerted through various means, including ownership of voting securities or contractual agreements.
This definition is important for prospective Face Foundrie franchisees because it clarifies the scope of relationships that could be relevant to the franchise agreement, particularly concerning matters such as competitive restrictions or renewal rights. For example, the agreement notes that restrictions on competitive activities do not apply to the ownership or operation of other Face Foundrie Facial Bars that are licensed or franchised by Face Foundrie or any of its affiliates. Understanding the definition of 'Affiliate' helps franchisees understand the full scope of these types of clauses.