For The Standardx franchise, does the definition of 'Affiliate' include entities directly owned by the party?

According to The Standardx's 2025 Franchise Disclosure Document, the definition of "Affiliate" does include entities directly or indirectly owned or controlled by a party. The FDD specifies that an affiliate is any person or entity directly or indirectly owned or controlled by, under common control with, or owning or controlling, such party. The definition clarifies that "control" means the power to direct or cause the direction of management and policies.

This definition is important for prospective franchisees because it broadens the scope of who is considered an affiliate of the franchisee or franchisor. This can have implications for various aspects of the franchise agreement, such as territorial rights, non-compete clauses, and transfer restrictions. For example, if a franchisee owns another business, even indirectly, that business could be considered an affiliate and subject to certain restrictions under the franchise agreement.

It is important for a prospective The Standardx franchisee to understand the full implications of this definition and how it might affect their other business interests or investments. They should carefully review the franchise agreement and seek legal counsel to ensure they fully understand their obligations and rights with respect to their affiliates.