Does the definition of 'Affiliate' for a Southern Steer franchise include entities under common control?
Southern_Steer Franchise · 2025 FDDAnswer from 2025 FDD Document
- 30.2.
Affiliate. "Affiliate" will mean any Entity or individual that, directly or indirectly, owns or controls, is owned or controlled by, or is under common ownership or control with a specified Entity.
Source: Item 22 — ITEM. 22 CONTRACTS (FDD pages 61–168)
What This Means (2025 FDD)
According to the 2025 Southern Steer Franchise Disclosure Document, an 'Affiliate' includes entities under common control. The FDD defines an affiliate as any entity or individual that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with a specified entity.
For a prospective franchisee, this definition is important because it clarifies the scope of relationships that Southern Steer considers to be affiliated. This could impact various aspects of the franchise agreement, such as approved suppliers, potential conflicts of interest, and adherence to brand standards across related entities.
For example, if a franchisee's spouse owns a business that could be considered a competitor, Southern Steer might view that business as an affiliate due to common ownership and control. This could create obligations or restrictions for the franchisee to ensure there is no conflict of interest or detriment to the Southern Steer brand. Franchisees should seek clarification from Southern Steer regarding specific situations to ensure compliance with the franchise agreement.