According to the Fat Shack agreement, what definition is used for 'Affiliates'?

Based on the 2025 Fat Shack Franchise Disclosure Document, the term 'Affiliate' is referenced within the context of an Associate entering into an agreement with Fat Shack Franchise Systems, Inc. (FSI) and the franchisee company. The document states that an Associate is or will become involved with the Company in various capacities such as an officer, partner, director, manager, agent, employee, member, Managing Owner, Designated Manager, beneficial owner, or independent contractor. These roles collectively constitute 'Affiliation.'

This Affiliation also extends to individuals related to a person who holds one of these positions within the franchisee company. The agreement stipulates that the Associate will gain access to confidential information related to FSI, its operations, Fat Shack Restaurants, and the Licensed Methods. This access to confidential information necessitates the Associate's agreement to certain terms, including nondisclosure and noncompetition.

For a prospective franchisee, this definition is important because it clarifies who is considered an 'Affiliate' and therefore subject to the confidentiality and non-competition agreements. This ensures that anyone with access to Fat Shack's confidential information, through their association with the franchisee, is bound by these protective measures. It is important to understand these obligations to avoid potential legal issues related to information disclosure or competitive activities.