In the Jack In The Box franchise agreement, what is included in the definition of 'Affiliates'?
Jack_In_The_Box Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2. DEFINITIONS OF TERMS. As used in this Agreement, the following terms shall have the meanings defined in this Section unless a different meaning is plainly required by the context:
- A. "Affiliates" shall include people, partnerships, corporations or other legal entities that directly or indirectly own or control Developer or Company, and partnerships, corporations or other legal entities that are directly or indirectly owned or controlled by Developer or Company, and all officers, directors, agents and employees of Developer or Company.
Source: Item 23 — RECEIPT (FDD pages 94–634)
What This Means (2025 FDD)
According to Jack In The Box's 2025 Franchise Disclosure Document, the franchise agreement defines "Affiliates" broadly. This definition is important because it clarifies the scope of various obligations and rights within the agreement, including compliance with laws and indemnification clauses.
Specifically, the term "Affiliates" includes people, partnerships, corporations, or other legal entities that directly or indirectly own or control either the Developer (franchisee) or Jack In The Box (the company). It also encompasses entities that are directly or indirectly owned or controlled by the Developer or Jack In The Box. This means that the definition extends beyond just the parent company and includes subsidiaries, sister companies, and any other entity under common ownership or control.
Furthermore, the definition explicitly includes all officers, directors, agents, and employees of both the Developer and Jack In The Box. This ensures that actions taken by these individuals on behalf of either party are also subject to the terms and conditions of the franchise agreement. This comprehensive definition helps to prevent parties from circumventing the agreement by acting through related entities or individuals. For a prospective franchisee, understanding this definition is crucial, as it clarifies who is bound by the agreement and whose actions could have implications under the franchise terms.