What is the definition of 'Affiliate' in relation to a Southern Steer franchise?

According to the 2025 Southern Steer Franchise Disclosure Document, an 'Affiliate' is defined 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. This definition is important for prospective franchisees to understand because it clarifies the scope of relationships that Southern Steer considers relevant to the franchise agreement.

This definition has several implications for a Southern Steer franchisee. For example, the franchisee must cooperate with Southern Steer, existing and prospective franchisees, and Affiliates in accomplishing the purpose of the agreement. The franchisee must also adhere to the highest standards of honesty, integrity, fair dealing, and ethical conduct when dealing with current and prospective customers, suppliers, Southern Steer, Affiliates, and the public. Additionally, the franchisee is prohibited from diverting business from Southern Steer, its Affiliates, or other businesses operated by Southern Steer or its franchisees.

Understanding the definition of 'Affiliate' is crucial for franchisees to avoid potential conflicts of interest and to ensure compliance with the franchise agreement. It also helps clarify the boundaries of the franchisee's obligations and restrictions, particularly concerning competition and business dealings. Franchisees should seek legal counsel to fully understand the implications of this definition and how it may affect their business operations.