What constitutes an 'affiliate' of a person or entity in the context of the Hydrodog franchise agreement?

According to Hydrodog's 2025 Franchise Disclosure Document, an 'affiliate' refers to any business entity that is directly or indirectly owned or controlled by a person, is under common control with a person, or is controlled by a person. This definition is important because the actions of an affiliate can have implications for the franchisee's obligations and restrictions under the franchise agreement.

For a prospective Hydrodog franchisee, this means that any business entities connected to them through ownership or control could be subject to certain restrictions outlined in the franchise agreement. For example, the franchisee may be restricted from operating a competitive business through an affiliate. Understanding this definition is crucial for ensuring compliance with the franchise agreement and avoiding potential conflicts of interest.

The definition of 'affiliate' is broad and encompasses various forms of ownership and control, so franchisees need to carefully consider their existing business relationships and any potential future ventures. It is also important to note that the definition of 'control' includes the power to direct the management and policies of a business entity, which means that even if a franchisee does not directly own a business, they could still be considered an affiliate if they have the power to influence its operations.