What is a 'Controlling Affiliate' in relation to a Surestay Hotel By Best Western franchise?

According to Surestay Hotel By Best Western's 2025 Franchise Disclosure Document, an 'Affiliate' is defined as any entity that directly or indirectly controls, is controlled by, or is under common control with the subject entity. This definition extends to natural persons, firms, corporations, partnerships, limited liability companies, associations, trusts, or any other type of entity.

This definition is important for prospective Surestay Hotel By Best Western franchisees because it clarifies the scope of relationships that could have implications under the franchise agreement. For instance, it could affect matters related to competitive activities, transfer of ownership, or compliance with brand standards. If a franchisee has an affiliate, that affiliate's actions could be attributed to the franchisee under the agreement if control exists.

Understanding the concept of 'Affiliate' and 'Control' is crucial, especially when considering business structures or potential ownership changes. Franchisees should carefully evaluate any existing or planned relationships with other entities to ensure they do not inadvertently violate the terms of their Surestay Hotel By Best Western franchise agreement through an affiliate's actions.