What is the Surestay Hotel By Best Western FDD definition of 'Affiliate'?

According to the 2025 Surestay Hotel By Best Western Franchise Disclosure Document, an 'Affiliate' is defined as any individual, firm, corporation, partnership, limited liability company, association, trust, or other entity that directly or indirectly controls, is controlled by, or is under common control with the subject entity. This definition is important for prospective franchisees to understand, as it clarifies the scope of relationships that could have implications under the franchise agreement.

The definition of 'Affiliate' is used in several contexts within the franchise agreement. For example, the term 'Competitor' is defined in relation to an 'Affiliate'. A 'Competitor' includes any individual or entity that, at any time during the term, whether directly or through an Affiliate, owns in whole or in part, or is the licensor or franchisor of a Competing Brand, irrespective of the number of hotels owned, licensed or franchised under such Competing Brand name. However, a Competitor does not include an individual or entity that is a licensee or franchisee of a Competing Brand owned by a third party.

Understanding the definition of 'Affiliate' is crucial for franchisees to avoid potential conflicts of interest or breaches of contract. For instance, if a franchisee's affiliate is involved with a competing hotel brand, it could be considered a breach of the franchise agreement. This definition helps Surestay Hotel By Best Western maintain brand consistency and protect its market position by preventing franchisees from engaging in activities that could benefit competing brands through related entities.