factual

For The Standardx franchise, does the definition of 'Affiliate' include entities under common control?

The_Standardx Franchise · 2025 FDD

Answer from 2025 FDD Document

  • "Affiliate" means, with respect to a party, any person or entity directly or indirectly owned or controlled by, under common control with, or owning or controlling, such party. For purposes of this definition, "control" means the power to direct or cause the direction of management and policies.

Source: Item 18 — OTHER INCOME (LOSS), NET (FDD pages 187–399)

What This Means (2025 FDD)

According to The Standardx's 2025 Franchise Disclosure Document, the definition of "Affiliate" does include entities under common control. The FDD states that an affiliate is any entity directly or indirectly owned or controlled by, under common control with, or owning or controlling, such party.

For a prospective franchisee, this definition is important because it clarifies the scope of relationships that could be considered affiliated with either the franchisee or The Standardx itself. This could have implications for various aspects of the franchise agreement, including potential conflicts of interest, transfer restrictions, and liability issues.

The definition specifies that "control" means the power to direct or cause the direction of management and policies. This provides a clear standard for determining whether an entity is considered an affiliate, focusing on the ability to influence decision-making rather than just ownership. This broad definition ensures that The Standardx can account for various business structures and relationships when enforcing the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.